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HEPBURN SHIRE COUNCIL PO Box 21 Daylesford 3460 T: 03 5348 2306 [email protected] hepburn.vic.gov.au

HEPBURN SHIRE COUNCIL ORDINARY MEETING OF COUNCIL

DRAFT MINUTES

TUESDAY 21 JUNE 2016

DAYLESFORD SENIOR CITIZENS ROOM

76 VINCENT STREET, DAYLESFORD

6:00PM

This Document is printed on 100% Australian recycled paper

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MINUTES ORDINARY MEETING OF COUNCIL 21 JUNE 2016

MINUTES TUESDAY 21 JUNE 2016

Daylesford Senior Citizens Room

76 Vincent Street, Daylesford

Commencing 6:00PM

CONTENTS PAGE

1. ACKNOWLEDGEMENT OF TRADITIONAL OWNERS ............................................ 5

2. OPENING OF MEETING .......................................................................................... 5

3. APOLOGIES ............................................................................................................. 6

4. DECLARATIONS OF CONFLICTS OF INTEREST ................................................... 6

5. CONFIRMATION OF MINUTES ............................................................................... 6

6. NOTICES OF MOTION ............................................................................................ 6

7. ITEMS OF URGENT BUSINESS ................................................................................ 6

8. PRESENTATION OF COUNCILLOR REPORTS ....................................................... 7

9. PUBLIC PARTICIPATION TIME .............................................................................. 13

9.1. PETITIONS .................................................................................................. 13

9.2. QUESTIONS ................................................................................................ 13

9.3. REQUESTS TO ADDRESS COUNCIL ......................................................... 19

10. STATUTORY PLANNING REPORTS ....................................................................... 20

10.1. USE AND DEVELOPMENT OF A DWELLING AND SHED AT CROWN ALLOTMENT 8A SEC D, 54 FOREST HILL ROAD, NEWLYN .................... 20

ATTACHMENT 1 - SITE PLAN ................................................................. 25

ATTACHMENT 2 - AERIAL VIEW ............................................................. 27

11. OFFICERS’ REPORTS ............................................................................................. 29

11.1. RESPONSE TO PETITION - TRENTHAM HUB AND HALL ........................ 29

11.2. RESPONSE TO JOINT LETTER - TRENTHAM MECHANICS INSTITUTE .. 34

11.3. RESPONSE TO TRENTHAM STREETSCAPE PETITION ............................ 38

11.4. BUDGET 2016/17 AND STRATEGIC RESOURCE PLAN 2016-2020 .......... 42

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ATTACHMENT 3 - DRAFT HEPBURN SHIRE COUNCIL BUDGET 2016/17 ................................................................................... 53

ATTACHMENT 4 - DRAFT HEPBURN SHIRE COUNCIL STRATEGIC RESOURCE PLAN 2016-2020 ...................................................................... 54

11.5. PROPOSED RATING STRATEGY 2016 ....................................................... 65

ATTACHMENT 5 - PROPOSED RATING STRATEGY 2016 ..................... 68

11.6. EFFICIENCY SAVINGS AND FUTURE DEBT MANAGEMENT .................. 83

11.7. PROPOSED AMENDMENT C66 – TOWN CENTRE ACTIVITY PRECINCT – INTRODUCE MIXED USE ZONE - HEPBURN SPRINGS ............................ 87

ATTACHMENT 6 - HEPBURN SPRINGS STRUCTURE PLAN .................. 90

ATTACHMENT 7 - PROPOSED MIXED USE ZONE ................................ 92

11.8. COMMUNITY PLANNING IMPLEMENTATION FUND 2015-16 ............... 99

11.9. LEASE RENEWAL – CRESWICK AND DISTRICT ELDERLY CITIZENS WELFARE COMMITTEE INCORPORATED AND THE CRESWICK SENIOR CITIZEN’S CENTRE INC. TO OCCUPY CRESWICK SENIOR CITIZENS CENTRE. .................................................................................................... 102

ATTACHMENT 8 - DEED OF RENEWAL OF LEASE – CRESWICK SENIOR CITIZENS CENTRE INC. ............................................................. 104

11.10. LIABILITY MUTUAL INSURANCE SCHEME (PUBLIC AND PRODUCTS LIABILITY INSURANCE AND PROFESSIONAL INDEMNITY INSURANCE) RENEWAL 2016-2017 ................................................................................ 108

11.11. REQUESTS FOR APPROVAL TO OPERATE B-DOUBLES AND HIGHER MASS LIMIT VEHICLES ON LOCAL COUNCIL ROADS .......................... 111

11.12. RECORDS OF ASSEMBLIES OF COUNCILLORS ..................................... 119

ATTACHMENT 9 - RECORDS OF ASSEMBLIES OF COUNCILLORS .. 122

12. COUNCIL SPECIAL COMMITTEES (SECTION 86) .............................................. 130

12.1. MINUTES OF SPECIAL COMMITTEES (SECTION 86) ............................. 130

13. COUNCIL ADVISORY COMMITTEES .................................................................. 132

13.1. MINUTES OF ADVISORY COMMITTEES ................................................. 132

14. CONFIDENTIAL ITEMS ........................................................................................ 134

15. CLOSE OF MEETING ........................................................................................... 135

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AARON VAN EGMOND

CHIEF EXECUTIVE OFFICER

21 JUNE 2016

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1. ACKNOWLEDGEMENT OF TRADITIONAL OWNERS

We would like to acknowledge we are meeting on Jaara people country, of which members and elders of the Dja Dja Wurrung community and their forebears have been custodians for many centuries.

On this land, the Jaara people have performed age old ceremonies of celebration, initiation and renewal.

We acknowledge their living culture and their unique role in the life of this region.

2. OPENING OF MEETING

PRESENT: MAYOR COUNCILLOR NEIL NEWITT, COUNCILLOR BILL MCCLENAGHAN, COUNCILLOR GREG MAY, COUNCILLOR PIERRE NICLAS, COUNCILLOR DON HENDERSON, COUNCILLOR KATE REDWOOD AM

IN ATTENDANCE: CHIEF EXECUTIVE OFFICER AARON VAN EGMOND, GENERAL MANAGER CORPORATE SERVICES GRANT SCHUSTER, GENERAL MANAGER KATHLEEN BRANNIGAN, GENERAL MANAGER INFRASTRUCTURE BRUCE LUCAS, MANAGER PLANNING JUSTIN FIDDES

STATEMENT OF COMMITMENT

“WE THE COUNCILLORS OF HEPBURN SHIRE

DECLARE THAT WE WILL UNDERTAKE ON EVERY OCCASION

TO CARRY OUT OUR DUTIES IN THE BEST INTERESTS

OF THE COMMUNITY

AND THAT OUR CONDUCT SHALL MAINTAIN THE STANDARDS

OF THE CODE OF GOOD GOVERNANCE

SO THAT WE MAY FAITHFULLY REPRESENT

AND UPHOLD THE TRUST PLACED IN THIS COUNCIL BY THE

PEOPLE OF HEPBURN SHIRE”

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3. APOLOGIES

Councillor Sebastian Klein

4. DECLARATIONS OF CONFLICTS OF INTEREST

Councillor Bill McClenaghan noted an indirect conflict of interest that he will declare in public question time.

5. CONFIRMATION OF MINUTES

RECOMMENDATION

5.1. That Council confirms the following Minutes (as previously circulated to Councillors) as required under Section 93 (2) of the Local Government Act 1989:

• Ordinary Meeting of Council held on 17 May 2016

MOTION

5.1. That Council confirms the following Minutes (as previously circulated to Councillors) as required under Section 93 (2) of the Local Government Act 1989:

• Ordinary Meeting of Council held on 17 May 2016

Moved: Councillor Don Henderson

Seconded: Councillor Greg May

Carried

6. NOTICES OF MOTION

Nil

7. ITEMS OF URGENT BUSINESS

Nil

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8. PRESENTATION OF COUNCILLOR REPORTS

MAYOR’S REPORT

Councillor Neil Newitt, Cameron Ward

It has been another busy month as we reach the end of financial year and the lead up to the federal elections.

During this past month, I have had the chance to speak to many in the community on the proposed budget. And the result of the upcoming federal election has featured prominently during discussions within government circles.

I would like to note the following events and appointments, and acknowledge many of you and council officers also were in attendance at a number of them:

Last month, I attended the Family Violence Stakeholder Forum here in Daylesford. Hosted by The Minister for the Prevention of Family Violence, Hon Fiona Richardson, and Mary-Anne Thomas MP, the forum included representatives from local health and associated service providers.

Friday, I attended the Central Highlands Councils meeting and The VicRoads information update (also attended by the CEO and GM Infrastructure).

At VicRoads, discussions included the recently announced funding for Daylesford roundabout and government's commitment to lowering the road toll. Of interest to us is the proposed works on the Ballarat to Creswick section of the Midland Highway, a significant project in the roll out of improved road network.

There was also the funding announcement by Mary-Anne Thomas of state government commitment of $250,000 toward the $380,000 upgrade at Lake Daylesford. It will deliver new signage, upgrades infrastructure and to paths around the lake.

Last week saw the unveiling of Central Highland Water's and Council's partnership to provide a new drinking fountain to Daylesford. This initiative is to promote the availability of free drinking water as an alternative to bottled water.

I conclude with mentioning two events that go toward enhancing our history in the shire.

I attended the Dja Dja Wurrung Welcome to Country for the Green Army Project at Hepburn Mineral Springs Reserve, and helped launch the Creswick of the Lindsay's Art Trail. This later project has been some time in the making, but the signage and walking trail will be another attraction within the shire. My congratulations to the many volunteers who have driven this project.

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COUNCILLOR REPORTS

Councillor Kate Redwood AM, Birch Ward

It has been a busy month with many and varied Council activities. Apart from the enjoyment of witnessing the inflow of money for the Raglan Street, East Street, Castlemaine Road roundabout, the funds for the upgrade of the surrounds of Daylesford Lake, and the unveiling of the Bourke Square drinking fountain, I was also delighted to be present when Catherine King announced the grant to the Daylesford and District Historical Society for the restoration of the Daylesford Temperance Banner, a handmade artefact dating from 1861. I also took great delight in witnessing the construction of the young children's play area in the Daylesford Community Park. Local families have supported this work, which Council has paid for out of this year's budget. It is a wonderful example of Council/community collaboration.

Cars and Coffee, family violence, Christmas Cheer, water security, have all demanded attention.

However, it is probably relevant given some shared program responsibilities with Council, to report that I am now officially a board member for Hepburn Health Service, and chair of that organisation's Finance and Audit Committee. the last month has required considerable time in relation to board recruitment of a CEO, and an announcement of the successful applicant will be made in the near future.

Councillor Don Henderson, Creswick Ward

I recently attended a meeting of the Dean Rec Reserve Committee where plans regarding their future events were discussed including upgrading the facility in order to attract more events to the area. Discussions are underway with the Kingston Pony Club who have expressed an interest in conducting events there.

A packed meeting at Creswick recently heard from senior police regarding policing operations in Creswick and Clunes and surrounding rural areas. The discussion outlined what police were doing including staggered hours ,increased undercover and traffic patrols. A number of significant drug ,theft and burglary arrests have occurred . The strong message was for people to be vigilant and report suspicious activity and most important to ring 000 and not the local station when reporting crime.

The Lindsay Arts Trail has finally come to fruition in Creswick and much praise must go to Ms Margaret Giles for her persistence against the odds to keep this project. This project has been ongoing for at least 10 years.

It is pleasing to see that works will begin to clean up weeds such as blackberry and gorse at the rear of Calambeen Park. Mr Lucas and myself walked the area and also took the time to look at the dive tower bolts which were subject of a negative report in 1983. We did find the bolts in some cases in a sad state .

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I attended the staff meeting along with Crs McClenaghan and Redwood to find a few surprises in the cookery department. Mr Lucas was discovered to have some hidden skills in making sausage rolls and the gender balance was noted in the prize winners.

A number of local Creswick people attended the first Corroborree held in the Ballarat region in 160 years. This was booked out and was a fabulous event put on by Sovereign Hill and the local indigenous performers. We also attended a play in the same vein which will be doing a road show soon . This play will tell the story of discussions regarding the future of aboriginal people in their absence. We were able to have an input into some ideas that I shared with Uncle Bryon about a voice of the people not present discussing the issues in the background.

I was really pleased to be part of an initiative started by volunteers from the Anglican church at the Creswick railway station to provide a weekly meal to those in need. Many volunteers and local organisations have offered their help with this project.

The Creswick Mens Shed will get a new wood heater. I recently attended the announcement by Hon Catherine King Federal Member for Ballarat.

I was sorry to miss the White Ribbon event launch and was surprised to see it on social media as this was the first I had heard of the event.

Councillor Pierre Niclas, Birch Ward

My report will be brief tonight as most of the events and issues of which I attended have already been covered off by Cr. Redwood and other Councillors.

I would however like to briefly mention the Welcome to Country ceremony I attended, conducted by the Dja Dja Wurrung to welcome the Green Army to the Springs for their clean-up of surrounding bush and streams. Although the ceremony itself was somewhat simple in nature, it was still a very moving event and one received respectfully by all.

Attending this event also gave me the opportunity to make direct contact with a member of the Dja Dja Wurrung for the purpose of discussing the opportunity of having one of its members come and meet the existing Mineral Springs Reserves Advisory Committee, understand some of this committees past and current projects with a view of establishing a permanent seat for the Dja Dja Wurrung on this committee going forward to ensure any cultural and / or historical issues are correctly and appropriately considered.

Councillor Sebastian Klein, Coliban Ward

No report provided

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Councillor Greg May, Creswick Ward

Just a few things to mention in this month’s report beginning with an informal meeting I attended in Creswick conducted by the Kingston Agricultural Society.

The purpose of the meeting was to discuss the future of the society’s annual show. Like many volunteer community groups they have difficulties maintaining numbers and most of their people are in an older age bracket. Many attending voiced their thoughts regarding the show’s future with most saying they understood the difficulties faced by Agricultural shows but also expressing an unwillingness to let the show die out completely. Further discussions and decision makings were planned for the society’s AGM to be held soon.

I also attended the Family Violence Forum held earlier this month in Daylesford. State Minister for Prevention of Family Violence Fiona Richardson addressed the meeting which was also attended by the member for Macedon, Mary-Anne Thomas. The forum was also attended by Councilors, senior Council staff and representatives from a range of organisations, including Hepburn Health Service, local GPs and specialist family violence services. Arrangements for the formation of the Shire’s White Ribbon committee are progressing with several people committing to join the committee and a tentative first meeting date set for some time in July.

The official opening of the Creswick of the Lindsays Arts Trail was another event I attended recently. The trail has been some years in the making but is now complete and will provide an insight into the lives of the Lindsay family for visitors and locals alike.

On Thursday June 16 I also attended the shire Municipal Emergency Management Planning Committee meeting in Creswick. This is just the second such meeting I’ve been to and I’m still trying to firstly, understand the many acronyms used at these meetings and secondly, the diversity of issues which need to be understood by the many representatives who attend these meetings. From day to day the planning and actions of this committee probably go largely unnoticed but it is reassuring to know that when an emergency situation arises that there are structures and plans in place to deal with it.

Councillor Bill McClenaghan, Holcombe Ward

What a time it is for funding announcements, most of which I have attended. The first was when the State Treasurer announced $1.3 Billion for a roundabout near the Farmers Arms Hotel in Daylesford before correcting that to $1.3 Million. What a roundabout that would have been. Then on 31st May, Mary-Anne Thomas came to Lake Daylesford and announced a State grant of $250,000 for redevelopment works in the lake precinct. Federally, Catherine King has been busy as well, announcing funds for extending the Domino Trail at Trentham.

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However, Catherine also came to the Glenlyon Bio-Link Walk to announce a Federal grant to assist the Glenlyon and Upper Loddon Landcare Group with building a footbridge over the Loddon River downstream from the Glenlyon Reserve. This will create a better network of tracks and trails along the upper Loddon within Glenlyon township and allow people to use the Bio-Link Walk when the Glenlyon Gun Club is having its monthly shoot by providing a safe bypass route out of range, as it were. The Landcare Group is immensely excited with their success in gaining funding for this project and hope to begin construction after winter. It was also pleasing to note on the day of the announcement that a quantity of blue metal has been spread along the walk where it winds through the bush to eliminate slipping hazards and aid the safety of users. Emergency vehicles are also able to access the walk should there be a need.

And not only will there be another footbridge along the walk but a number of solid timber bench seats that have been built and installed by the hardworking volunteers at the Daylesford Men’s Shed.

Councillors will recall supporting a planning application to build a mobile phone tower next to the Glenlyon phone exchange. Unfortunately, there are ten people launching an appeal against this decision of Council on the basis of a loss of visual amenity and the belief that the tower should be built elsewhere for better mobile coverage. I understand that there will be a compulsory closed conference hearing at VCAT on 10th August and a full hearing on 28th October. The delay in getting this appeal through VCAT is fortunately not as long as it sometimes is and it will hopefully still be possible to have an operating phone tower in Glenlyon before the onset of the summer fire season this year. VCAT will absolutely not consider ordering Telstra to relocate the tower to higher ground and will only rule on Telstra’s original application for a tower beside the Glenlyon phone exchange, Council’s determination to support the application in April and the appeal for a review of that decision. It is unfortunate that some members of the community still do not understand that the Federal funding allocated will only allow for a phone tower beside the existing phone exchange where all the phone infrastructure and cabling is present and not on any other higher site some distance out of town where the costs would be two or three hundred thousand dollars greater.

I too attended the official opening of the Creswick of the Lindsays Arts Trail and the new drinking fountain in Daylesford with Central Highlands Water as well as the launch of the Green Army project in the Hepburn Mineral Springs Reserve with the Dja Dja Wurrung. Then, last Wednesday, I attended the Glenlyon Recreation Reserve Special Committee meeting that manages this reserve for Council.

Last Sunday, I attended a meeting of the Jim Crow Planning Group at Yandoit that has met again after more than a year in recess. The most controversial agenda item

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was the name of the group that dates back two Council terms when Council first created this Community Planning Group through a facilitated process of community engagement and empowerment.

Jim Crow was the old name of the Mount Franklin area as used by the early squatters even before Captain Hepburn came through in 1838. It is the name the Captain gave to the creek that connects the three communities of Franklinford, Yandoit and Clydesdale now served by the Community Planning Group.

However, in the southern states of America, the name “Jim Crow” was a slang expression for a Negro and was used to demean black Americans. It was afterwards used in what came to be called the “Jim Crow Laws” in the USA that discriminated against African Americans by prohibition and segregation. Some people take offence at this name as they see it as synonymous with racist discrimination against all black populations and want the Community Planning Group’s name changed as well as the name of the creek.

RECOMMENDATION

8.1. That Council receives and notes the Mayor’s and Councillors’ reports.

MOTION

8.1. That Council receives and notes the Mayor’s and Councillors’ reports.

Moved: Cr Bill McClenaghan

Seconded: Cr Kate Redwood AM

Carried

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9. PUBLIC PARTICIPATION TIME

This part of the Ordinary Meeting of Council allows for the tabling of petitions by Councillors and Officers and 30 minutes for the purpose of:

• Responding to questions that have been submitted by members of the community.

• Allowing members of the community to address Council.

Community members are invited to submit written questions to the Chief Executive Officer by 12 noon on the day of the Council Meeting. If you wish to address Council you must provide a brief synopsis of your address in writing to the Chief Executive Officer by 12 noon on the day of the Council Meeting.

Questions received may be taken on notice and responded to later. Likewise, some questions of an operational nature may be responded to through usual administrative procedure. Separate forums and Council processes are provided for deputations or for making submissions to Council.

9.1. PETITIONS

Nil

9.2. QUESTIONS

Question 1: From Ms Cate Evans, Trentham

Council claim to have undertaken extensive consultation with the community regarding the Trentham Streetscape through their “It's Your Main Street” campaign.

I recall one community consultation session in the town square, whereby two young council employees collected ideas from residents in the form of written comments. None of my three written ideas were included in the proposal. How did council decide on the ideas in the proposal and who's were they? What is the need to brick the path at the Cosmo or place a barricade and build a culvert along High St? Residents of surrounding streets were not consulted on the tree planting outside their properties, nor was the CFA consulted on the planting of trees in a designated place of last resort in Camp St. It appears, again, that the opinions of a small group have been selected to represent the community, and that council's perception of town beautification is not necessarily that of the community. My petition clearly shows more residents are not in favour of aspects of the proposal than there were in favour.

What were the dates of council's community consultation sessions in Trentham, what was the process undertaken to choose ideas and how many residents were involved in the final decision making process?

Answered by Mayor Councillor Neil Newitt

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The Streetscape Planning and design project engaged with communities across five towns in Hepburn, including Trentham, to discuss current and future town centre needs and interpret these into streetscape designs.

Initial engagement involved key stakeholder group meetings, informal community events and written, online and verbal feedback methods. Stakeholder group meetings held in Trentham were with the Trentham Business Group, Trentham and District Historical Society and the Trentham Community Forum.

In Trentham two public events were held - a formal community meeting on 11 March 2014 and an informal weekend event in Market Square on Sunday 16 March 2014. Surveys were available online and distributed at community meetings. Postcards used for announcing the project provided further opportunity for written feedback. Other feedback was provided by phone and email.

These processes sought to understand key concerns and values from a locals perspective. All feedback was collated and key word tags applied to understand themes and trends.

Key findings for each town covered "What's great ....." + "what could be improved ..." + "Other comments". This along with background review, policy analysis, site observation and analysis informed key design proposals. These design proposals were further developed into concept plans, draft streetscape designs and final designs.

Feedback was sought on concept design during June, community consultation session held in Trentham on 28 October 2014 about draft plans followed by another community meeting on 28 November 2014 in Trentham to seek feedback on final draft plans.

Council officers are happy to meet with you and other interested community members to take you through the detailed reports, alternatively they can be downloaded from Council's website.

Question 2: From Ms Cate Evans, Trentham

It is the assumption and dictation of need that causes discontent within a community and results in a poor community satisfaction outcome. Last year, Hepburn Shire had the lowest satisfaction rate in the State of 46% and has vowed to increase that rate for 2016. Bearing these facts in mind, the Trentham hub debacle and that I have a proven ability as a community welfare advocate to provide clear warning signs of problems;

Does council agree that it be in their best interests to further consult the community regarding potentially controversial aspects of the Streetscape project, as outlined in my petition, before implementation?

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Council will consider its response to your streetscape petition tonight on the agenda at item 11.3.

Question 3: From Mr Gary McIntosh, Bullarto

The 2014/15 budget allocated $22,000 for the Bullarto Community Facilities project 000483.

Council’s minutes and resolutions from August 2014 and April 2015 detail the project as being an Interpretive Display, Community Noticeboard, Shelter and related signage. These are also detailed in a new lease agreement with the Bullarto Hall Committee that these facilities are Council’s responsibility to maintain.

Brown Ink Design constructed the Glenlyon and Lyonville Interpretive Displays and provided a quote for Council in May 2014 of $4,600 for Bullarto’s Display. The noticeboard was estimated to cost around $2,400 leaving $15,000 for the shelter.

Council officers inform us that they intend to sign off the Bullarto Community Facilities project ‘as complete’ without the two most important and cheapest components being the Interpretive Display and Community Noticeboard even budgeted into the project planning and have further advised all the funds have now been spent solely on the shelter!

This shelter is of an over-engineered, ugly and non-functional design and location that was not approved by most stakeholder groups in community consultation and has left many in the community completely disenfranchised.

Will Council ensure $7,000 is added to the 2016/17 budget to ensure the Bullarto Community facilities project 000483 can be completed as already approved and detailed in Council’s minutes, resolutions and the 2014/15 budget, being for the Interpretive Display, Community Noticeboard and signage as already exist at Glenlyon and Lyonville noting that long-time local residents have already compiled much of the historical and interpretive information to be displayed and the community noticeboard at Bullarto has been requested for decades?


In August 2014 Council approved" construction of new Council owned community facilities for the Bullarto township, being an interpretive display, notice board and picnic shelter" on the land leased to the Bullarto Hall Committee.

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Subsequently Council (21 April 2015) approved the location of the Bullarto Community Facilities on the corner of Old Blackwood Road and 70 Old Blackwood Road on the Council owned land adjacent to the Bullarto Hall.

Council allocated $20,000 in the 2014/15 budget to undertake this project, the total project budget reflected an overall amount of $22,000, based on a community contribution of $2,000. Expenditure on the facilities to end May 2015 was $21,285 for construction of the shelter, permits and engineering with an additional commitment in the system for picnic furniture. The interpretive noticeboard is unable to be delivered as part of the current project.

However, Council will give further consideration to fund the interpretative signage, potentially through the upcoming mid-year budget review process.

Question 4: From Mr Gary McIntosh, Bullarto

Regarding Bullarto’s new recreation reserve known as ‘Bullarto Community Park’ that is located on the Council owned old tennis court land at Bullarto, and the new lease of this area by the DELWP appointed nine member Bullarto Hall Committee, the Deputy Secretary of DELWP has recently advised as follows:

“The committee’s remit is to manage the Bullarto Hall building and the small associated Crown land reserve. I am advised that while the committee has entered into a lease arrangement with Hepburn Shire Council over the adjacent council-owned freehold land for uses “ancillary” to the hall, the lease does not enable the committee of management to develop any facilities on the land without council’s consent. While the committee may be a stakeholder in the future development of such facilities, it is not the decision maker. I strongly recommend you take your concerns about the future development of this site directly to Hepburn Shire Council as the land owner.”

Council officers also recently agreed in writing that the Bullarto Picnic Shelter is only Stage 1 of the Bullarto Community Facilities project and part of Council’s overall plan to activate the area for use by the community into the future.

Will Council acknowledge that there are dozens of other stakeholders, some user groups having in excess of 100 members that use Bullarto Community Park and also hire the hall and desire some basic community facilities and accordingly will Council erect a street sign stating ‘Bullarto Community Park’ at the entrance as the first step in public acknowledgement of the Bullarto community park?

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Yes, Council acknowledges that there are other stakeholders that use the land leased by Council to the Bullarto Hall Committee. Council officers will consolidate street signage to direct people to the Bullarto Hall and Reserve.

Ms Liz Burns was not present at the meeting to ask her questions and these will be responded to in writing

Councillor Bill McClenaghan declared an indirect conflict in the matter being raised by Mr Mehmet Bozkurt under section 78D of the Local Government Act, where he may be involved in civil proceedings against council as a body corporate.

Cr Bill McClenaghan left the meeting at 6:32pm

Question 5: Mr Mehmet Bozkurt, Norlane VIC

My request is subsequent to receiving a letter from Steve Cook dated 15 January, 2016. The matter was in relation to a failure to comply with a fire prevention notice (Infringement Notice 05793).

As stated in previous correspondence with Steve Cook and Helen Hogg I confirm the following:

1. I have not, to date, received a Fire Hazard Notice instructing me to cut grass on the abovementioned property by a certain date.

2. I have been fined $1,517.00 for non-compliance to a Fire Hazard Note despite the fact the grass had been cut properly and completely. Subsequently Steve and Helen from the Council had been notified of completed works by Contractor.

3. My letters / phone calls not answered / responded to and requests for a duplicate copy of the Fire Hazard Notice and Fine have not been forwarded to me as yet.

4. The Council has taken an unreasonable amount of time taken to resolve the issue.

The questions I would like to put to members of Hepburn Council are as follows:

Having been fined by Council I request the Council to please explain to me the following:

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Why I did not receive an initial Fire Hazard Notice as I have no record of receipt of any such Notice?

Why I have not received a copy of the said Notice I was supposed to have received initially nor a copy of the issued Fine documentation at all as later requested?

Why numerous letters and phone calls have not been answered in a timely manner according to Council's usual practices & Policies (EG 15 days to resolve a complaint).

Why this matter is dragging on for month after month without resolution ?


Whilst we will not go into detail about the specifics of this infringement in a public forum, I can confirm that Council relies on Australia Post for the delivery of mail including fire hazard notices. This mail is sent to the property address as registered in our rates database and is the recommended approach of the CFA.

This process is compliant with legislative requirements and is deemed to be an appropriate and reasonable action to advise property owners of a Fire Hazards or other correspondence. If you would like a copy of your original Fire Hazard Notice to be provided to you this can certainly be arranged.

Council acknowledges you have contacted Council on several occasions and our records show that in each case Officers have returned contact and provided an update on progress of your infringement review.

The most recent telephone contact was Friday 17 June where your call was returned within the hour and a further update on the review was provided.

It is acknowledged that we would have ideally concluded the review of infringements however the review panel has sought additional information and copies of the photographic evidence to be provided for consideration which has delayed the conclusion.

In line with the advice provided to you on Friday 17 June, we anticipate the reviews being concluded by the end of June. We will make sure that all copies of documents are made available to you.

Cr Bill McClenaghan returned to the meeting at 6:38pm.

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9.3. REQUESTS TO ADDRESS COUNCIL

1. Ms Cate Evans addressed Council in relation to Trentham Hub consultation and options for decision making, including the Solution Focused Therapy option.

2. Mr Dennis Trewhella addressed Council in relation item 11.1 Trentham Hub on the agenda.

3. Ms Susie Spence addressed Council in relation to the different views on the Trentham Hub.

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10. STATUTORY PLANNING REPORTS

10.1. USE AND DEVELOPMENT OF A DWELLING AND SHED AT CROWN ALLOTMENT 8A SEC D, 54 FOREST HILL ROAD, NEWLYN


In providing this advice to Council as the Planning Coordinator, I Louise Johnston have no interests to disclose in this report.

PURPOSE

The purpose of this report is for Council to make a determination on the application to use and develop the land at CA 8A, 54 Forest Hill Road, Newlyn for a dwelling and shed.

BACKGROUND

A permit application was lodged on 1/02/2016 for the use and development of the land for a dwelling and shed on a 4ha parcel on Forest Hill Road, Newlyn.

The land forms part of a larger farm holding known as 54 Forest Hill Road, Newlyn comprising six Farming Zone parcels having a combined area of 88.4Ha and an existing dwelling.

The applicant was advised that the proposal for the use and development of a dwelling on the land was unlikely to receive officer support as it was contrary to the objectives and outcomes of the Farming Zone. The Applicant advised that they wished to proceed with the application.

The land is zoned Farming Zone (FZ) – Schedule Area 2 and is subject to an Environmental Significance Overlay - Schedule 1. The application was advertised to the adjoining landowners and occupiers and as a result, one objection has been received.

The application has been referred to Goulburn Murray Water (GMW) and Central Highlands Water (CHW) pursuant to Clause 66 of the Hepburn Planning Scheme who both gave conditional consent to the application.

The application was referred to Councils Engineering and Environmental Health Officer who gave conditional consent to the proposal.

ISSUE/DISCUSSION

State and Local Policy

STATE PLANNING POLICY FRAMEWORK (SPPF)

Clause 14.01 -1 Protection of agricultural land seeks to protect productive farmland which is of strategic significance in the local or regional context.

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To achieve this objective, in considering a proposal to subdivide or develop agricultural land, the following factors must be considered:

• The desirability and impacts of removing the land from primary production, given its agricultural productivity.

• The impacts of the proposed subdivision or development on the continuation of primary production on adjacent land, with particular regard to land values and to the viability of infrastructure for such production.

• The compatibility between the proposed or likely development and the existing uses of the surrounding land.

• Assessment of the land capability.

Clause 16.02-1 Rural residential development seeks to manage development in rural areas to protect agriculture and avoid inappropriate rural residential development.

This is to be achieved by discouraging development of isolated small lots in rural zones from use of the land for rural living or other incompatible uses.

LOCAL PLANNING POLICY FRAMEWORK (LPPF)

Clause 21.08 – Rural Land Use and Agriculture recognises as a key issue the protection of high quality agricultural land from encroachment of urban land uses.

Clause 22.04 – Rural Land, Dwellings in Rural Zones seeks to provide for the erection of dwellings on rural lots where associated with and required to support a productive agricultural enterprise.

Zoning and Overlay Provisions

Farming Zone

The relevant primary purposes of the farming zone are:

• To provide for the use of land for agriculture. • To encourage the retention of productive agricultural land. • To ensure that non-agricultural uses, particularly dwellings, do not adversely

affect the use of land for agriculture.

A permit is triggered for the development and use of a dwelling in the Farming Zone on land less than 40ha.

Environmental Significance Overlay 1 – Proclaimed Catchment Protection.

The environmental objectives of the overlay are:

• To protect the quality of domestic water supplies within the Shire and the broader region.

• To maintain and where practicable enhance the quality and quantity of water within watercourses.

• To prevent increased runoff or concentration of surface water leading to erosion or siltation of watercourses.

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• To prevent erosion of banks, streambeds adjoining land and siltation of watercourses, drains and other features.

• To prevent pollution and increased turbidity and nutrient levels of water in natural watercourses, water bodies and storages

The proposal, subject to the containment and treatment on site of all wastewater, is considered to meet the objectives of this overlay.

KEY ISSUES

State and Local Policy are both quite clear with regard to agricultural land use. The fragmentation of productive agricultural land is discouraged. Uses which may conflict with, or permanently remove land from productive agriculture should not be supported.

Applications for the use and development of the land for a dwelling should not be supported where the land and surrounding land is of very high agricultural quality and has not been allowed to become fragmented by subdivision or housing development on small lots. The application site and surrounding land is identified as of very high agricultural quality. Fragmentation as a result of small lot dwellings has not occurred in this part of the shire.

The application did include the submission of a Farm Management Plan undertaken by the owner of the land. The permit applicant’s representative submitted that the Farm Management Plan demonstrated the necessity of the dwelling and the legitimacy of the farm business. The use of the land for agriculture has never been doubted as the land has been used productively for agricultural purposes for many years without the benefit of a dwelling on this parcel. There is also the potential for a proliferation of dwellings in this area as a consequence of the approval of this dwelling. It is considered that the approval of a dwelling on the subject site would undermine the purposes of the Farming Zone and the state and local policies which seek to protect productive agricultural land. This outcome would be contrary to the orderly planning of the area and should be refused.

COUNCIL PLAN /LEGISLATIVE COMPLIANCE

This application meets Council’s obligations as Responsible Authority under the Planning and Environment Act 1987.

FINANCIAL IMPLICATIONS

Any application determined by Council or under delegation of Council and which is subject to appeal rights and may incur costs at VCAT if appealed.

RISK IMPLICATIONS

N/A

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ENVIRONMENTAL/SOCIAL/ECONOMIC IMPLICATIONS

N/A

COMMUNITY AND STAKEHOLDER ENGAGEMENT

The application has been advertised by sending notification of the proposal to adjoining and adjacent owners and occupiers. As a result, one objection has been received which can be summarised below. Each point is addressed by Council Officer in italics:

• The adjoining property undertakes various agricultural activities which generate ongoing noise and amenity conflicts.

• Agricultural activities which involve irrigation pumps required to be operational 24/7 as well as fertilizers and use of farm machinery.

The use and development of a dwelling on a small parcel of land is considered not compatible with the ongoing protection of existing agricultural use on adjoining land. A dwelling would limit the operation and expansion of the adjoining agricultural uses. The proposed dwelling could be adversely affected by the adjoining agricultural activities due to dust, noise, chemicals, farm machinery, truck traffic and hours of operation which operate on a 24/7 basis.

CONCLUSION

The application for a dwelling and shed on a small parcel of high agricultural land is contrary to the provisions of the Hepburn Planning Scheme, as demonstrated in this report. The landowner has an existing dwelling on the land in their ownership. The development of a dwelling is not required to support any proposed agricultural use as the land is already used for agricultural purposes and has been by the current owner since 1973. Having regard to the clear directions set for agricultural land by both state and local policy, the application should not be supported.

OFFICER’S RECOMMENDATION

That Council, having considered all the matters required under Section 60 of the Planning & Environment Act 1987 decides to Refuse to Grant a Permit under the provisions of clause 35.07 of the Hepburn Planning Scheme in respect of the land known and described as 54 Forest Hill Road, Newlyn for The use and development of a dwelling and shed in accordance with the submitted plans, with the application dated 1/02/2016

For the following reasons:

10.1.1. The proposal is contrary to state planning policy clause 14.01-1

10.1.2. The proposal is not supported by state planning policy clause 16.02-1

10.1.3. The proposal is contrary to local policy clause 22.04, rural land.

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10.1.4. The proposal does not support the purposes of the farming zone.

10.1.5. The proposal would lead to fragmentation of productive agricultural land.

10.1.6. The proposal is contrary to the orderly planning of the area.

Mr Russell McKay addressed Council in opposition to the application.

Mr Aaron Jolliffe addressed Council in support of the application on behalf of the applicant.

MOTION

That Council, having considered all the matters required under Section 60 of the Planning & Environment Act 1987 decides to Refuse to Grant a Permit under the provisions of clause 35.07 of the Hepburn Planning Scheme in respect of the land known and described as 54 Forest Hill Road, Newlyn for The use and development of a dwelling and shed in accordance with the submitted plans, with the application dated 1/02/2016

For the following reasons:

10.1.1. The proposal is contrary to state planning policy clause 14.01-1

10.1.2. The proposal is not supported by state planning policy clause 16.02-1

10.1.3. The proposal is contrary to local policy clause 22.04, rural land.

10.1.4. The proposal does not support the purposes of the farming zone.

10.1.5. The proposal would lead to fragmentation of productive agricultural land.

10.1.6. The proposal is contrary to the orderly planning of the area.

Moved: Councillor Bill McClenaghan

Seconded: Councillor Kate Redwood AM

Carried

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ATTACHMENT 1 - SITE PLAN

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ATTACHMENT 2 - AERIAL VIEW

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11. OFFICERS’ REPORTS

11.1. RESPONSE TO PETITION - TRENTHAM HUB AND HALL

GENERAL MANAGER COMMUNITY SERVICES

In providing this advice to Council as the General Manager Community Services , I Kathleen Brannigan have no interests to disclose in this report.

PURPOSE

The purpose of this report is for Council to respond to the petition tabled at the Ordinary Council meeting on 17 May 2016 containing 57 complete signatures which states:

1. That Council provide funds for works on buildings standing on the Trentham Mechanics Institute Reserve as identified in the Reports by Mr Liddy and Mr Osborne to preserve them and in particular to upgrade the hall and not to demolish it.

And

2. That the Council provide commensurate facilities in Trentham including those identified in plans for the proposed 'Hub' whether built beside the existing Mechanics Hall or elsewhere in Trentham.

BACKGROUND

The Trentham Community Facilities Review (2013) recommended development of a multi-use community hub in Trentham, combining the operations and services of the Trentham Neighbourhood Centre, Mechanics Institute Hall, Library and providing a Visitor Information Centre presence. It recommended that the Hub be built on the site of the existing Mechanics Institute, following assessment of a number of sites against the following criteria:

1. Central location 2. Space for Community Hub development, possible expansion, car parking and

some landscaped outdoor space. 3. Provision of appropriate utilities to service any development. 4. Appropriate planning requirements for the development of community

facilities and related activities 5. Community support

In September 2014 Council endorsed the draft concept design, proposed governance model and business plan for the Trentham Community Hub. Council also noted that officers would commence applying for external funding for the capital cost of the Trentham Community Hub.

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ISSUE/DISCUSSION

The site investigation and design process was funded in Council's 2013/14 budget and ClarkeHopkinsClarke (CHC) architects were appointed to undertake this work. A Trentham Community Hub Community Reference Group made up of representatives of user groups was established in December 2013 to be the key point of reference for both Council and community during the project.

Extensive site analysis of the Hall was undertaken by architects Clarke Hopkins Clarke (CHC), see below.

Retention of the existing hall and reuse as a library was considered a feasible option, however the levels of maintenance and upkeep relative to the value of what is remaining from the original building was seen to be questionable. The hall was considered to have low heritage value with the west and south walls not being from the original building. In addition the hall was seen to have little environmentally sustainable design merit.

As the Trentham Hub project has developed, it has become clear that there are strong views in the community about the proposed demolition of the current Trentham Mechanics Institute. It is proposed to undertake a new community consultation process to investigate other design options at the site including the utilisation of the existing Mechanics Institute building .

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In relation to works identified in the report mentioned in the petition it is worth noting that the Building Condition Assessment Report (Wayne Liddy, 2013) was completed along with a number of others as part of the Trentham Facilities Review. The purpose of these reports was to determine building code compliance and potential structural issues in these facilities.

Council has commenced some minor maintenance works at the Mechanics Institute which includes cleaning the roof and gutters, trimming of overhanging vegetation and other maintenance works. Council is working with former members of the Trentham Mechanics Institute Committee to identify and undertake any other urgent maintenance works.

COUNCIL PLAN/LEGISLATIVE COMPLIANCE

Council Plan 2013:2017:

Strategic Objective – Active and Engaged Communities

Key Strategic Activity:

1. Work with and support communities and residents to implement community driven projects through community planning, provision of advice, information and community grants, acknowledging the significant contribution made by community volunteers.


Council funding of $300,000 towards construction of the Trentham Hub in its 2016-17 proposed budget with a further allocation of $500,000 in the 2017-18 proposed budget. A community contribution of $100,000 is being underwritten by Council.

Depending on what is required, costs associated with a new community consultation process to investigate alternative design options may be able to be met from operating savings in the 2015-16 Community Development budget, should Council wish to undertake these activities.

RISK IMPLICATIONS

Council will undertake maintenance required to comply with Essential Safety Measures.


The focus of a community hub is to provide a space and environment that supports collaboration between user groups in a way that builds capacity and enables each organisation to deliver opportunities that would otherwise not be available. Additional benefits for Trentham are to consolidate services and activities and reduce operational burdens on volunteers.

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There were two rounds of broad community engagement about concept designs for the Trentham Hub including community presentations and displays, surveys and the Trentham Hub web page. It was clear in the information presented as part of this process that it was proposed to demolish the existing Mechanics Institute. The first round about the initial concept design occurred in April 2014. Following this revised concept designs, 'Concept 02' were developed and engagement around theses revised designs was undertaken during June and July 2014.

In February, March and April 2016 community members were invited to consultation sessions regarding the Trentham Hub Project with the Mayor, Cr Neil Newitt, Ward Councillor, Cr Sebastian Klein and CEO, Aaron van Egmond. Over 60 people took up the invitation to meet and express their views.

With initial contact through the community there have been some preliminary discussions about a different approach to engagement with New Democracy Foundation, an independent research organisation which conducts practical real world trials of innovative democracy. Although New Democracy have indicated that they have participated in these types of processes for reduced fee or even pro bono, no commitment has been established in relation to this. Indication's of the likely fee for this type of process are in excess of $40,000 should the project not be eligible for a reduced fee. In addition approaches such as Solution Focussed therapy has also been tabled by members of the Community.

CONCLUSION

There continues to be a demonstrated need and support for a community hub in Trentham and it is believed that the Mechanics Institute site remains the best site for a hub based on previous consultations. In light of on-going concerns about demolition of the Hall it is recommended to undertake an additional community consultation process to investigate other design options at the site, including the utilisation of the existing Mechanics Institute building . Prior to undertaking this design process establishing an agreed scope for the overall process with a cross section of the community.


That Council:

11.1.1. Notes and receives the report;

11.1.2. Endorses an additional community consultation process to investigate other design options at the site, including the utilisation of the existing Mechanics Institute building.

11.1.3. Writes to the head petitioner advising them of Council's position.

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MOTION

That Council:


11.1.2. Endorses an additional broad-based community consultation process to facilitate the best way to progress the creation of the Trentham Community Hub on a suitable site and which considers the utilisation of the existing Mechanics Institute building.


Moved: Councillor Kate Redwood AM


Carried

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11.2. RESPONSE TO JOINT LETTER - TRENTHAM MECHANICS INSTITUTE



PURPOSE

The purpose of this report is for Council to respond to the joint letter tabled at the Ordinary Council meeting on 17 May 2016 containing 212 signatures which stated that:

In the event that Hepburn Shire Council succeeds in obtaining control over the Trentham Mechanics' lnstitute their PUBLICLY STATED INTENTION is to DEMOLISH, the existing hall in order to build such a Trentham Hub Project as funding allows and ultimately they see fit.

On the date of the passage of Resolution 11.2,2 the status of the Trentham Hub Project was as follows:

a) The Trentham Hub Project is UNDEFINED

b) The Trentham Hub Project is UNCOSTED

a) The Trentham Hub Project is UNFUNDED,

d) The Trentham Hub Project as presently envisaged OMITS ANY REFERENCE TO THE FUTURE REQUIREMENTS OF THE TRENTHAM MECHANICS' INSTITUTE.

Accordingly, WE THE UNDERSIGNED being ALARMED and DISMAYED that Hepburn Shire Council would move to secure control over the Crown Land reserved for the conduct of the Trentham Mechanics Institute in such a PRE-EMPTIVE MANNER hereby call on the Trentham Mechanics Institute Committee Of Management Incorporated (ABN: 71 682 018 178) to:

1) URGENTLY convene an ordinary or special meeting (as may be required) to consider and pass the following Resolution:

i) "That the Trentham Mechanics lnstitute Committee of Management Incorporated hereby resolves that it does not support or recommend nor shall it agree to transfer its responsibilities for managing the Crown Land reserved to the Trentham Mechanics Institute from itself to Hepburn Shire Council; and

ii) That no further consideration be given to proposals relating to Hepburn Shire Council's Trentham Hub Project where a transfer of

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responsibility for managing the Crown Land reserved to the Trentham Mechanics' lnstitute is involved until such time as:

(a) Any proposed Trentham Hub Project is fully DEFINED

(b) Any proposed Trentham Hub Project if fully COSTED

(c) Any proposed Trentham Hub Project is fully FUNDED

(d)Any proposed Trentham Hub building design takes account of at least the next 30 YEARS REQUIREMENTS OF THE TRENTHAM MECHANICS' INSTITUTE to the satisfaction of its then Committee of Management, and

iii) That any future Trentham Mechanic Institute Committee of Management that may be called upon to consider transferring responsibility for managing the Crown Land reserved to the Trentham Mechanics' Institute from itself to Hepburn Shire Council only do so if it has been APPOINTED AFTER any proposed Trentham Hub Project has satisfied conditions a - d above."

2) That prior to consideration being given to the above Resolution any CONFLICTS Of INTEREST in relation to the matter under consideration are declared and that any Committee Member declaring such a Conflict is required to absent themselves from the meeting and not be entitled to vote.

BACKGROUND

At the Ordinary Council Meeting on 18 March 2014, Council requested a further report from officers following the submission of a petition from the Trentham Community FORUM Inc with consideration being given to increased support by Council at the Trentham Mechanics Institute and the Trentham Sportsground.

Following engagement with the Trentham Mechanics Institute committee of management, at its August 2014 Council meeting, Council resolved to become Committee of Management for the Trentham Mechanics Institute.

In September 2014, Council endorsed the draft concept design, proposed governance model and business plan for the Trentham Community Hub.

The Department of Environment, Land, Water & Planning (DELWP) appointed Council as the new committee of management for the Trentham Mechanics Institute Reserve effective from 1 May 2016. Council has assumed the role as the reserve manager and is responsible for the day to day management of the facility.

ISSUE/DISCUSSION

Following review of the document which was submitted as a 'petition' at the May 2016 Council meeting, it has been established that the document is considered a joint letter under Council's Local Law #1. Further, the joint letter is addressed to, and

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calls on, the Trentham Mechanics Institute Committee of Management Inc to convene a meeting to consider the recommendations contained in the letter. The letter is not addressed to Council. Given the recent decision of DELWP to appoint Council as the committee of management, any concerns with this appointment should now be directed to DELWP.

The comments in the letter in relation to the Trentham Community Hub are noted and will be taken on board as the project progresses. The previous report, item 11.1, also addressed a number of the concerns.


Not applicable.


Nil identified with this report.

RISK IMPLICATIONS

Nil identified with this report.


The governance model and business plan, including cost estimates, for the Trentham Community Hub are well-developed and have been endorsed by Council.


Council officers have worked with members of the former Trentham Mechanics Institute Crown Reserve Committee of Management during the management transition process.

CONCLUSION

Council has been appointed by DEWLP as Crown Reserve Committee of Management for the Trentham Mechanics Institute, in line with Council's resolution of August 2014.


That Council:

11.2.1. Notes and receives the report.

11.2.2. Sends a copy of the joint letter to the Department of Environment Land Water and Planning for its information.

11.2.3. Writes to the author of the joint letter advising them of Council's position, including the points included in item 11.1.

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MOTION

That Council:

11.2.1. Notes and receives the report.

11.2.2. Sends a copy of the joint letter to the Department of Environment Land Water and Planning for its information.

11.2.3. Writes to the author of the joint letter advising them of Council's position, including the points included in item 11.1.

Moved: Councillor Bill McClenaghan

Seconded: Councillor Don Henderson

Carried

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11.3. RESPONSE TO TRENTHAM STREETSCAPE PETITION



PURPOSE

The purpose of this report is for Council to respond to the petition tabled at the Ordinary Council meeting on 17 May 2016 and signed by 240 people, of which 74 signatories were not from Trentham or surrounding areas (Blackwood, Spring Hill, Littlehampton, Newbury, Barry's Reef and East Trentham) and one had signed twice. The petition:

"appeals to the Hepburn Shire to respect the history and heritage of Trentham and undertake the proposed YES plans.

and "...appeal the following amendments;

NO:

• bricking the gravel path at the Cosmo, • trees in Camp Street, • to culverts and barricades along the main street, • to changes to Market Street, • to cheap seating and fixtures, • to modern looking pebble mix parking areas, • to removal of original fixtures; troughs and brick gutters.

YES:

• to bluestone gutters and curbs, • to antique wrought iron seats, • to footpaths, • to removal of slippery slate, • to tree planting (except along Camp St), to street antique lamps, • to underground power cables, • to pedestrian crossing.

IN ADDITION: Improved public toilet facilities; disability and nappy changing areas.

BACKGROUND

Council adopted Streetscape Plans for Creswick, Clunes, Trentham, Hepburn Springs and Glenlyon at its Ordinary Meeting in January 2015.

The streetscape plans were developed through a four stage process:

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• Stage 1 - 'Listen and Discuss': For each town, this included a review of relevant background reference documents, meetings with stakeholders, an existing condition assessment, confirmation of study areas and the first round of community consultation.

• Stage 2 - 'Interpret and Respond': For each town, broad material palettes and concept designs were developed in line with feedback received and the plans were then presented to the community.

• Stage 3 - 'Refine and Recommend': For each town, draft streetscape designs with an increased level of detail and refinement were developed and presented to the community.

• Stage 4 - 'Present and Listen': For each town, final draft designs were presented to the community and a final opportunity for feedback provided.

A variety of project proposals were developed for each town that aim to improve amenity and liveability of the towns. Areas of improvement included:

• Traffic calming • Improving pedestrian and cyclist amenity and safety • Car parking • Tree planting • Open space improvements • Provision of a standard suite of furniture, and; • Retaining and enhancing heritage character.

ISSUE/DISCUSSION

Following review of the document which was submitted as a 'petition' at the May 2016 Council meeting, it has been established that the document is considered a petition under Council's Local Law #1.

Council's is about to embark on one of the largest plantings of new street trees in Trentham since its establishment as detailed in the Trentham Streetscape Strategy which has always shown the intention to include Camp Street. Advice has been sought from the CFA about concerns, raised in the petition, that tree planting in Camp Street (a Place of Last Resort) will increase fire risk. At the time of publishing the agenda, a response had not yet been obtained. The response from the CFA will inform any changes to the plans for new street trees.

The tree species are in keeping with existing streetscapes and heritage of Trentham Council’s Parks and Open Space team will plant nearly 190 street trees over the coming months.

Other works including works to outstands at the intersection of Market and High Street and formalising car parking will commence progressively during 2016-17. These works will be announced before they are commenced. The kerb outstands at town entry points ( eastern and western approaches) and the footpath upgrade

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between Market Street and the Mechanics Institute are not included in this stage of the Trentham Streetscape Plan implementation. Footpath expansion projects proposed in the Plan will be considered as part of the process to prioritise walking and cycling projects across the municipality .



Strategic Objective – Quality Community Infrastructure


7. Improve the liveability and amenity of our Communities by delivering improved levels of service across all of Hepburn Shires streetscapes, Parks and Gardens through the introduction of planned work schedules for areas such as town entrances, park furniture, sporting ovals and reserves.

Action: Implement the Streetscape Revitalisation Planning Project for the towns of Clunes, Creswick, Glenlyon, Hepburn Springs and Trentham.


Funding of $60,000 has been allocated in the 2015-16 budget with a further amount of $200,000 included in Council's proposed 2016-17 budget.

RISK IMPLICATIONS

Significant external expertise was utilised in developing streetscape plans including the community, landscape architects, urban designers, traffic engineers and VicRoads staff. The annual requirement for Council and CFA to assess NSPs of Last Resort will continue.


Visually appealing and well maintained streetscapes can have a significant impact on improving economic activity within town centres.


The process for developing the streetscape plans for each town occurred between November 2013 and January 2015 and included extensive community consultation. Engagement included:

• Four public sessions in each town to discuss the plans at the project commencement, concept plan, draft plan and final draft plan stages. The initial stage also involved a weekend street consultation in each town.

• Meetings with a variety of stakeholder groups in each town at the commencement of the project and throughout the project, as required

• Following each of the public sessions the project documents were uploaded on to the project website (www.yourmainstreet.com.au) with an electronic

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survey for people to provide feedback who were unable to attend meetings. These surveys were open for a minimum of two weeks.

• Following the presentation of the final draft plans, the plans were available for public comment throughout November 2014.

• Meetings were advertised through The Advocate newspaper, email and social media networks, Business and Tourism groups, Council webpage and project webpage, community newsletters and via the Shire News on three occasions.

Throughout the development of the streetscape plans, a number of project proposals received a substantial level of community feedback. All of this feedback was considered by the project consultants and plans were modified as required. As proposals are progressively implemented for each town, further consultation and discussion will be undertaken prior to project construction.

CONCLUSION

Council adopted the Streetscape Plans for Clunes, Creswick, Glenlyon, Hepburn Springs and Trentham in January 2015. There was extensive consultation throughout the development process and various projects have been and will continue to be implemented from these Plans.


That Council:



MOTION

That Council:



Moved: Councillor Pierre Niclas


Carried

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11.4. BUDGET 2016/17 AND STRATEGIC RESOURCE PLAN 2016-2020

GENERAL MANAGER CORPORATE SERVICES

In providing this advice to Council as the Manager Finance and Information Technology, I Trafford Thompson have no interests to disclose in this report.

PURPOSE

The purpose of this report is to present the Budget 2016/17 and Strategic Resource Plan 2016-2020 for Council’s consideration and adoption.

BACKGROUND

In accordance with the Local Government Act 1989, Council is required to prepare a Budget and Strategic Resource Plan for each financial year. At the Ordinary Meeting of Council on 19 April 2016, the Proposed Budget 2016/17, including the Strategic Resource Plan elements, was endorsed for public advertising to seek submissions. The advertising and submission process has been completed. The Budget 2016/17 and Strategic Resource Plan 2016-2020 now requires formal adoption.

ISSUE/DISCUSSION

The budget seeks to balance the demand for services and facilities, the required infrastructure renewal and upgrade, management of the Shires’ natural environment, and the community’s capacity to pay.

The recommendations below are the formal resolutions to be passed by Council to finalise and adopt the Budget 2016/17 and Strategic Resource Plan 2016-2020.

Minor changes have been made to the budget since the proposed budget was publicly advertised. The changes are as follows:

• Update of Mayor’s introduction to remove reference to proposed budget and submissions, plus inclusion of the $61 savings to residents receiving weekly kerbside collection compared to 2012/2013;

• Inclusion of works at Glenlyon Hall within Section 2.2 • Annual transfer of $200,000 to Debt Management Reserve for LGFV interest

only loan added to Statement of Changes in Equity (Section 3.3); • Annotation of which financial performance indicators are also included in the

financial sustainability indicators as per VAGO (Section 4); • Annotation of projects that are funded from council reserves (section 6) • Inclusion of Trust funds and deposits to calculate unrestricted cash and

investment, previously omitted (Section 11.2); • Listing of projects and amount of funding from the open space reserve

(section 11.2.1);

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• Correction in figures reported under discretionary reserves for waste management and loan management reserve movements (Section 11.2.4);

• Resultant correction to reported unrestricted cash adjusted for discretionary reserves (Section 11.2.5)

• Removal of fees for Daylesford ARC, where Council does not set the fee.

A copy of the Budget 2016/17 is included as Attachment 3.

A copy of the Strategic Resource Plan 2016-2020 is included as Attachment 4 issued under separate cover.

Budget Summary

The 2016/17 Budget has rates income increasing by 2.5% or $389,000 plus a 0.8% or $114,000 increase in revenue from 2015/16 supplementary rates. The 0.8% increase in revenue from supplementary valuations, which arises predominantly from the rating of new buildings for the first time in 2015/16, represents the growth in Council's rate base. In addition, $170,000 is forecast for supplementary rates to be charged in 2016/17. This results in total revenue from rates of $16.13 million. In addition, $2.33 million will be raised from the waste management charge and kerbside collection charges.

The budgeted operating result for the 2016/17 year is a surplus of $5.58 million, compared to a forecast surplus of $3.67 million in 2015/16.

The adjusted underlying result for the 2016/17 year is a surplus of $0.85 million which is an increase of $0.77 million from the 2015/16 year. The adjusted underlying result is a measure of financial sustainability and Council’s ability to achieve its service delivery objectives as it is not impacted by once off capital income items which can often mask the operating result.

Total cash and investments are forecast to decrease by $1.43 million to $11.54 million as at 30 June 2017. The primary driver for this decrease is the funding of capital projects including projects being carried forward to 2016/17 and projects funded out of the open space and waste financial reserves.

The Proposed Budget 2016/17 includes a significant number of operational and capital projects to implement key Council strategies and plans, including:

• Walking and Cycling Strategy • Sustainability Strategy • Waste and Resource Recovery Strategy • Community Planning Strategy • Events Strategy • Youth Strategy (in development) • Economic Development Strategy (in development) • Community Hub projects

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Total capital works included in 2016/17 is $13.94 million. This includes carry forward expenditure of $1.482 million and grant income of $1.18 million for incomplete capital projects.

Carry Forward from 2015/16

Funding has been included in the 2016/17 budget for projects currently included in the 2015/16 budget but which are anticipated to be unexpended as at 30 June 2016. These funds include all sources of allocated revenue received prior to 30 June 2016. The reason for identifying and including the required carry forward funds is to provide a complete picture of the initiatives and major initiatives that will be undertaken during 2016/17.

Differential Rates

Rate differentials have been set in the proposed budget in accordance with the Rating Strategy.

The rate differentials that will be applied are as follows:

Type or class of land 2015/16 2016/17

$/$ CIV Differential $/$ CIV Differential Change General Rate 0.004219 100% 0.003978 100% -5.7% Farm Rate 0.002743 65% 0.002586 65% -5.7% Commercial Rate 0.004895 116% 0.004614 116% -5.7% Industrial Rate 0.004895 116% 0.004614 116% -5.7% Mixed Use Rate 0.004895 116% 0.004614 116% -5.7% Vacant Land Rate - Township 0.005275 125% 0.004973 125% -5.7% Vacant Land Rate - Other 0.004219 100% 0.003978 100% -5.7% Trust for Nature Rate 0.002110 50% 0.001989 50% -5.7% Recreational Rate 0.002110 50% 0.001989 50% -5.7%

Due to property values being reassessed in 2016, there is a decrease in rate in the dollar to achieve the 2.5% overall income increase.

Charges

The annual service charges are proposed as follows:

Type of Charge Per Rateable

Property Per Rateable

Property

Change 2015/16 2016/17

$ $ Kerbside collection (Garbage) Existing Weekly 126.00 126.00 0.00% Kerbside collection (Garbage) New Fortnightly 106.00 106.00 0.00% Kerbside collection (Recycling) Fortnightly 45.00 45.00 0.00% Commercial Garbage Charge 280.00 280.00 0.00% Waste management improved charge Waste management Unimproved Charge

109.00 109.00

109.00 109.00

0.00% 0.00%

The kerbside collection charge and commercial garbage collection charge are service charges and only those who are provided with the service are charged.

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Council also has a waste management charge which covers the costs of transfer stations and other costs associated with keeping the Shire clean and tidy. This includes street cleaning and street litter bin collection. Council considers it equitable that this charge applies to all properties.

Cost savings and efficiencies from implementing the first stages of the Waste and Resource Recovery Strategy 2014 have resulted in no increase to the waste charges in 2016/17.

Capital Works Program

Council’s proposed capital works program for 2016/17 is $13.94 million. Highlights of the capital works program are listed below. Some of these projects are subject to receiving funding from other Government sources.

• Asset Renewal Programs comprising building and structures, road resealing and resheeting, road pavement rehabilitation, road safety improvements, bridge, footpath, and kerb and channel renewals $4.37 million

• Fleet, plant and equipment renewal $555,000 • Streetscape implementation in Glenlyon, Hepburn Springs and Trentham

$940,000 • Mineral Springs Reserve improvement works $248,000 • Towards Zero Sustainability Strategy Implementation - Council Facilities

$75,000 • Daylesford community park improvements $50,000 • Newlyn and Daylesford ovals irrigation project $130,000 • Creswick Pump Track for Cycling $140,000 • Town and shire road signage $90,000 • Trentham community hub construction (first year) $1.30 million • Creswick soccer lighting project $160,000 • Lake Daylesford improvements $330,000 • Creswick adventure playground $100,000

New and carried forward operational initiatives total $1.86 million and include the following projects. Some of these projects are subject to receiving funding from other Government sources.

• Major facilities master planning - Newlyn Recreation Reserve, Doug Lindsay, Hepburn Recreation Reserve, Trentham Recreation Reserve $80,000

• Climate resilient recreation facilities - Trentham Water Security, Daylesford and Creswick sports ground alternate water projects $75,000

• Implementation of youth strategy $100,000 • Towards Zero Sustainability Strategy Implementation - Community Facilities

$40,000 • Community planning implementation fund $50,000

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• White ribbon committee $5,000 • Turf playing surfaces improvement program $35,000 • Development of reconciliation action plan $20,400 • Landscape Wills square fountain renewal $50,000 • Street decorations extended to Trentham $15,000 • Swimming pool activities and participation programs $15,000 • Establish an off lead dog area in Clunes $5,000 • Park Lake landscape improvements and partnership $15,000 • Tree safety works $100,000


Under Section 127 (1) of the Local Government Act 1989, Council has a statutory responsibility to prepare a budget each financial year. In addition, under S.130 (3) of the Act, Council must adopt the budget by 30 June each year.

Under Section 126 (3) (b) of the Local Government Act 1989, Council must adopt the Strategic Resource Plan not later than 30 June each year.

The budget and strategic resource plan contains the necessary statutory information required under the Local Government Act and Local Government (Planning and Reporting) Regulations 2014.


A financial summary of the proposed budget is detailed above.

The budget setting process is necessary to ensure that funds are set aside to achieve the most important objectives as prioritised by Council after consulting the community.

The declaring of rates and charges will have a financial implication on each ratepayer and the capacity for Council to deliver services to the community.

RISK IMPLICATIONS

The annual budget process is a key control in mitigating and controlling financial risk.


Council appreciates the varying demographics of our Shire and has sought to keep the increase of revenue to be raised from rates and charges as low as possible, without compromising service.

Council recognises that if sufficient funds are not allocated to asset renewal then the condition of those assets will decline, along with the capacity to deliver services to the community.

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The proposed Budget 2016/17 has been prepared by considering all the strategies and plans that Council has previously developed in consultation with the community. The previous consultation has resulted in prioritised programs that are implemented progressively.

The proposed Budget 2016/17 and prescribed information was publicly advertised in the local newspapers seeking submissions from interested parties in accordance with Section 223 of the Local Government Act 1989.

The Proposed Budget 2016/17 was available for inspection for 28 days at Council offices in Daylesford, Creswick and Clunes, at all Hepburn Library branches and from Council’s website www.hepburn.vic.gov.au

Community budget information sessions were conducted in each of the five wards of the Shire.

Any person was able to make a submission to Council on any proposal contained in the budget. There were ten submissions received by the Council before the 5pm Wednesday 25 May 2016 deadline. A Special Council Meeting was held on Tuesday 9 June 2016 to hear the submissions received and all submissions were considered in Council's decision to adopt the budget. No amendments to the budget have been made following the submissions received. All submitters will be written to, providing them with feedback on Council’s consideration of their submissions.

The final Council Budget 2016/17 will be placed on Council’s website and copies will be made available for viewing at Council’s administration offices.

CONCLUSION

The Budget 2016/17 and Strategic Resource Plan include financial statements that are financially responsible and sustainable, which seek to deliver on Council’s strategic objectives.

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http://www.hepburn.vic.gov.au/



That Council, having complied with the requirements in the Local Government Act 1989 and Local Government (Planning and Reporting) Regulations 2014 regarding the preparation and content of the Budget for the 2016/17 financial year and the updated Strategic Resource Plan:

11.4.1. Determines that the Budget 2016/17, as presented to this meeting, be adopted.

11.4.2. Determines that the Strategic Resource Plan 2016-2020, as presented to this meeting, be adopted and included in the Council Plan 2013-2017.

11.4.3. Makes the following declarations in relation to the Budget 2016/17, which commences 1 July 2016:

• Council intends to raise an amount of $18,463,581 by general rates, and annual service charges as described within this recommendation.

• It is further declared that the general rates will be raised by the application of differential rates.

• It be recorded that Council considers that differential rates will contribute to the equitable and efficient carrying out of Council functions. The respective types or classes of land which are subject to each differential rate are those defined in the schedule to this recommendation.

• Council resolves the following rate in the dollar for each type of rate to be levied for the period 1 July 2016 to 30 June 2017.

Type or class of land 2016/17 $/$ CIV

General Rate 0.003978 Farm Rate 0.002586 Commercial Rate 0.004614 Industrial Rate 0.004614 Mixed Use Rate 0.004614 Vacant Land Rate - Township 0.004973 Vacant Land Rate - Other 0.003978 Trust for Nature Rate 0.001989 Recreational Rate 0.001989

• Council intends to raise $16,130,167 from the differential general rates by multiplying the capital improved value of the rateable land by the applicable rate in the dollar.

• Council resolves to levy a Waste Management Charge of $109 for the period 1 July 2016 to 30 June 2017 on all properties. Owners of farm rated properties will only pay one charge per 'single farm enterprise'. The intended amount to be raised by this charge is $1,151,367.

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• Council resolves to levy a Kerbside Collection (Garbage) Weekly Service charge of $126 on those residential, farm, mixed use and trust for nature properties included in the service areas for the period 1 July 2016 to 30 June 2017. The intended amount to be raised by this charge is $648,144.

• Council resolves to levy a Kerbside Collection (Garbage) Fortnightly Service charge of $106 on those residential, farm, mixed use and trust for nature properties included in the service areas, excluding approved properties that have elected to opt-out, for the period 1 July 2016 to 30 June 2017. The intended amount to be raised by this charge is $163,873.

• Council resolves to levy a Commercial Garbage Collection Service charge of $280 on those properties receiving the service for the period 1 July 2016 to 30 June 2017. The intended amount to be raised by this charge is $59,080.

• Council resolves to levy a Kerbside Collection (Recycling) Fortnightly Service charge of $45 on those residential, farm, mixed use and trust for nature properties included in the service areas and those other properties receiving a service, excluding approved properties that have elected to opt-out, for the period 1 July 2016 to 30 June 2017. The intended amount to be raised by this charge is $310,950.

11.4.4. Determines that interest be charged on all overdue rates and charges in accordance with section 172 (2) of the Local Government Act 1989.

11.4.5. That pursuant to section 167 (1) of the Local Government Act 1989, Council resolves that all rates and charges levied as a result of this declaration be payable in four instalments on the dates fixed by the Minister under section 167 (2).

11.4.6. Gives public notice of the decision to adopt the Budget 2016/17.

11.4.7. Determines that those persons who have made submissions be responded to thanking them for their comments and advising them of the outcomes.

11.4.8. Determines that a copy of the adopted Budget 2016/17 be submitted to the Minister by 30 June 2016, in accordance with section130 (4) of the Local Government Act 1989.

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MOTION

That Council, having complied with the requirements in the Local Government Act 1989 and Local Government (Planning and Reporting) Regulations 2014 regarding the preparation and content of the Budget for the 2016/17 financial year and the updated Strategic Resource Plan:

11.4.1. Determines that the Budget 2016/17, as presented to this meeting, be adopted.

11.4.2. Determines that the Strategic Resource Plan 2016-2020, as presented to this meeting, be adopted and included in the Council Plan 2013-2017.

11.4.3. Makes the following declarations in relation to the Budget 2016/17, which commences 1 July 2016:

• Council intends to raise an amount of $18,463,581 by general rates, and annual service charges as described within this recommendation.

• It is further declared that the general rates will be raised by the application of differential rates.

• It be recorded that Council considers that differential rates will contribute to the equitable and efficient carrying out of Council functions. The respective types or classes of land which are subject to each differential rate are those defined in the schedule to this recommendation.

• Council resolves the following rate in the dollar for each type of rate to be levied for the period 1 July 2016 to 30 June 2017.

Type or class of land 2016/17 $/$ CIV

General Rate 0.003978 Farm Rate 0.002586 Commercial Rate 0.004614 Industrial Rate 0.004614 Mixed Use Rate 0.004614 Vacant Land Rate - Township 0.004973 Vacant Land Rate - Other 0.003978 Trust for Nature Rate 0.001989 Recreational Rate 0.001989

• Council intends to raise $16,130,167 from the differential general rates by multiplying the capital improved value of the rateable land by the applicable rate in the dollar.

• Council resolves to levy a Waste Management Charge of $109 for the

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period 1 July 2016 to 30 June 2017 on all properties. Owners of farm rated properties will only pay one charge per 'single farm enterprise'. The intended amount to be raised by this charge is $1,151,367.

• Council resolves to levy a Kerbside Collection (Garbage) Weekly Service charge of $126 on those residential, farm, mixed use and trust for nature properties included in the service areas for the period 1 July 2016 to 30 June 2017. The intended amount to be raised by this charge is $648,144.

• Council resolves to levy a Kerbside Collection (Garbage) Fortnightly Service charge of $106 on those residential, farm, mixed use and trust for nature properties included in the service areas, excluding approved properties that have elected to opt-out, for the period 1 July 2016 to 30 June 2017. The intended amount to be raised by this charge is $163,873.

• Council resolves to levy a Commercial Garbage Collection Service charge of $280 on those properties receiving the service for the period 1 July 2016 to 30 June 2017. The intended amount to be raised by this charge is $59,080.

• Council resolves to levy a Kerbside Collection (Recycling) Fortnightly Service charge of $45 on those residential, farm, mixed use and trust for nature properties included in the service areas and those other properties receiving a service, excluding approved properties that have elected to opt-out, for the period 1 July 2016 to 30 June 2017. The intended amount to be raised by this charge is $310,950.

11.4.4. Determines that interest be charged on all overdue rates and charges in accordance with section 172 (2) of the Local Government Act 1989.

11.4.5. That pursuant to section 167 (1) of the Local Government Act 1989, Council resolves that all rates and charges levied as a result of this declaration be payable in four instalments on the dates fixed by the Minister under section 167 (2).

11.4.6. Gives public notice of the decision to adopt the Budget 2016/17.

11.4.7. Determines that those persons who have made submissions be responded to thanking them for their comments and advising them of the outcomes.

11.4.8. Determines that a copy of the adopted Budget 2016/17 be submitted to the Minister by 30 June 2016, in accordance with section130 (4) of the Local Government Act 1989.

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Seconded: Councillor Bill McClenaghan

Carried

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ATTACHMENT 3 - DRAFT HEPBURN SHIRE COUNCIL BUDGET 2016/17

(ISSUED UNDER SEPARATE COVER)

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ATTACHMENT 4 - DRAFT HEPBURN SHIRE COUNCIL STRATEGIC RESOURCE PLAN 2016-2020

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DRAFT for Council consideration

Strategic Resource Plan 2016-2020

Section 125(1) of the Local Government Act, 1989 (the Act) requires councils to prepare aStrategic Resource Plan and include this in the Council Plan.

1.1 Plan development

The Act requires a Strategic Resource Plan to be prepared describing both financial and non-financialresources (including human resources) for at least the next four financial years to achieve the strategicobjectives in the Council Plan. In preparing the SRP, Council must take into account all other plans andstrategies in regard to services and initiatives which commit financial and non-financial resources for theperiod of the SRP.

Council has prepared an SRP for the four years 2016/17 to 2019/20 as part of its ongoing financial planningto assist in adopting a budget within a longer term framework. The SRP takes the strategic objectives andstrategies as specified in the Council Plan and expresses them in financial terms for the next four years.

The key objective, which underlines the development of the SRP, is financial sustainability in the medium tolong term, while still achieving Council’s strategic objectives as specified in the Council Plan. The keyfinancial objectives, which underpin the SRP, are:· to maintain existing service levels;· to maintain consistency in future rises of rates and charges;· to maintain an annul budget surplus;

1 Hepburn Shire Council

Forecast Budget TrendActual

Indicator 2015/16 2016/17 2017/18 2018/19 2019/20 +/o/-$’000 $’000 $’000 $’000 $’0003,665 5,578 3,945 2,327 2,424 -

84 850 202 262 567 o12,457 10,826 11,237 11,524 12,902 +10,877 11,760 10,650 9,513 9,676 -12,372 13,936 14,937 8,798 9,219 o

· Prudently manage financial risks relating to debt, assets and liabilities

to a ta a a u budget su p us;· to achieve an underlying cash budget surplus of not less than $250,000 per annum, before including carry forward;· to maintain a responsible and sustainable asset management program.

In preparing the SRP, Council has also been mindful of the need to comply with the following Principles ofSound Financial Management as contained in the Act:

Cash flows from operations

· Provide reasonable stability in the level of rate burden· Consider the financial effects of Council decisions on future generations· Provide full, accurate and timely disclosure of financial information.

The SRP is updated annually through a rigorous process of consultation with Council service providersfollowed by a detailed sensitivity analysis to achieve the key financial objectives.

1.2 Financial resources

The following table summarises the key financial results for the next four years as set out in the SRP foryears 2016/17 to 2018/19. Appendix A includes a more detailed analysis of the financial resources to beused over the four year period.

Strategic Resource PlanProjections

Surplus/(deficit) for the yearAdjusted underlying resultCash and investments balance

Capital works expenditure

1 Hepburn Shire Council55


Key to Forecast Trend: + Forecasts improvement in Council's financial performance/financial position indicator o Forecasts that Council's financial performance/financial position indicator will be steady - Forecasts deterioration in Council's financial performance/financial position indicator

The following graph shows the general financial indicators over the four year period.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2015/16 2016/17 2017/18 2018/19 2019/20

$'00

0

Surplus/(deficit) for the year Adjusted underlying resultCapital Works Expenditure Cash flows from operations

2 Hepburn Shire Council

· Infrastructure strategy - Capital expenditure over the four year period will total $46.89 million at an average of $11.72 million. Excluding construction of the two community hubs and the bioenergy facility, the average is $8.48 million.

The key outcomes of the Plan are as follows:

· Financial sustainability - Cash and investments is forecast to increase marginally over the four year period from $12.46 million to $12.90 million, which indicates a balanced budget on a cash basis in each year

· Rating levels – Modest rate increases are forecast over the four years at an average of 2.5% in line with State Government rate capping.

· Service delivery strategy – Service levels have been maintained throughout the four year period. Despite this, operating surpluses are forecast to trend downward over the four years. This is reflective of the downward trend of capital grants in each of these years. However, excluding the effects of capital items such as capital grants and contributions, the adjusted underlying result is a small surplus in each year of the four year period. The underlying result is a measure of financial sustainability and is an important measure as once-off capital items can often mask the operating result.

· Borrowing strategy – Borrowings are forecast to increase from $2.69 million to $4.58 million over the four year period. This includes new borrowings of $3.13 million in 2017/18.

Capital Works Expenditure Cash flows from operationsCash and investments balance



2. Financial Statements

2.6 Statement of Human Resources

This section presents information in regard to the Financial Statements.

This section includes the following financial statements in accordance with the Local Government Act 1989 andthe Local Government Model Financial Report.

2.1 Comprehensive Income Statement2.2 Balance Sheet2.3 Statement of Changes in Equity2.4 Statement of Cash Flows2.5 Statement of Capital Works



2.1 Comprehensive Income StatementFor the four years ending 30 June 2020

2016/17 2017/18 2018/19 2019/20$’000 $’000 $’000 $’000

IncomeRates and charges 18,464 19,048 19,719 20,414Statutory fees and fines 554 568 582 597User fees 792 811 831 852Grants - Operating 4,753 4,167 4,237 4,308Grants - Capital 6,562 5,850 4,172 3,964Contributions - monetary 122 60 60 60Contributions - non-monetary 218 0 0 0Net gain/(loss) on disposal of property, infrastructure, plant and equipment

426 353 62 64

Other income 1,531 1,644 1,613 1,710Total income 33,422 32,501 31,276 31,969

ExpensesEmployee costs 11,354 11,694 12,045 12,406Materials and services 8,949 9,075 8,913 9,065Bad and doubtful debts 6 6 6 6Depreciation and amortisation 6,694 6,939 7,132 7,138Borrowing costs 145 131 128 189Other expenses 697 711 725 740Total expenses 27,844 28,556 28,949 29,545

Surplus/(deficit) for the year 5,578 3,945 2,327 2,424

Other comprehensive incomeItems that will not be reclassified to surplus or deficit in future periods:Net asset revaluation increment 120 368 126 386Total comprehensive result 5,698 4,313 2,453 2,810

ProjectionsStrategic Resource Plan



2.2 Balance SheetFor the four years ending 30 June 2020

2016/17 2017/18 2018/19 2019/20$’000 $’000 $’000 $’000

AssetsCurrent assetsCash and cash equivalents 10,826 11,237 11,524 12,902Trade and other receivables 2,088 2,082 2,076 2,070Other financial assets 713 913 1,113 113Inventories 17 17 17 17Other assets 68 68 68 68Total current assets 13,712 14,317 14,798 15,170

Non-current assetsProperty, infrastructure, plant & equipment

227,474 233,947 235,695 238,120

Intangible assets 597 503 409 315Total non-current assets 228,072 234,451 236,104 238,436Total assets 241,784 248,768 250,902 253,605

LiabilitiesCurrent liabilitiesTrade and other payables 2,207 2,207 2,207 2,207Trust funds and deposits 1,473 1,473 1,473 1,473Provisions 2,025 2,025 2,025 2,025Interest-bearing loans and borrowings 437 300 90 1,460Other Liabilities 39 39 39 39Total current liabilities 6,182 6,045 5,835 7,205

Non-current liabilitiesProvisions 513 513 513 513Interest-bearing loans and borrowings 1,846 4,671 4,582 3,122Other Liabilities 109 92 74 56Total non-current liabilities 2,468 5,275 5,168 3,690Total liabilities 8,650 11,320 11,002 10,895Net assets 233,134 237,448 239,900 242,710

EquityAccumulated surplus 146,488 150,233 152,359 154,583Reserves 86,647 87,215 87,541 88,127Total equity 233,134 237,448 239,900 242,710




2.3 Statement of Changes in EquityFor the four years ending 30 June 2020

TotalAccumulated

SurplusRevaluation

ReserveOther Reserves

$’000 $’000 $’000 $’0002017Balance at beginning of the financial year 227,436 140,990 84,891 1,556Surplus/(deficit) for the year 5,578 5,578 - -Net asset revaluation increment/(decreme 120 - 120 -Transfer to other reserves 0 (715) - 715Transfer from other reserves 0 635 - (635)Balance at end of the financial year 233,134 146,488 85,011 1,636

2018Balance at beginning of the financial year 233,134 146,488 85,011 1,636Surplus/(deficit) for the year 3,945 3,945 - -Net asset revaluation 368 - 368 -Transfer to other reserves 0 (200) - 200Transfer from other reserves 0 - - -Balance at end of the financial year 237,448 150,233 85,379 1,836





2.4 Statement of Cash FlowsFor the four years ending 30 June 2020

2016/17 2017/18 2018/19 2019/20$’000 $’000 $’000 $’000

Inflows Inflows Inflows Inflows(Outflows) (Outflows) (Outflows) (Outflows)

Cash flows from operating activitiesRates and charges 18,464 19,048 19,719 20,414Statutory fees and fines 554 568 582 597User fees 792 811 831 852Grants - operating 4,753 4,167 4,237 4,308Grants - capital 6,562 5,850 4,172 3,964Contributions - monetary 122 60 60 60Interest received 305 305 310 310Rent received 985 1,010 1,035 1,062Other receipts 224 311 250 320Employee costs (11,354) (11,694) (12,045) (12,406)Materials and services (8,949) (9,075) (8,913) (9,065)Other payments (697) (711) (725) (740)Net cash provided by/(used in) operating activities

11,760 10,650 9,513 9,676

Cash flows from investing activitiesPayments for property, infrastructure, plant and equipment

(13,718) (14,937) (8,798) (9,219)

Proceeds from sale of property, infrastructure, plant and equipment

1,081 2,340 200 200

Payments for investments (200) (200) (200) 0Proceeds from sale of investments 0 0 0 1,000Net cash provided by/ (used in) investing activities

(12,837) (12,797) (8,798) (8,019)

Cash flows from financing activities Finance costs (145) (131) (128) (189)Proceeds from borrowings 0 3,125 0 0Repayment of borrowings (409) (437) (300) (90)Net cash provided by/(used in) financing activities

(554) 2,558 (428) (279)

Net increase/(decrease) in cash & cash equivalents

(1,630) 411 287 1,378

Cash and cash equivalents at the beginning of the financial year

12,457 10,826 11,237 11,524

Cash and cash equivalents at the end of the financial year

10,826 11,237 11,524 12,902




2.5 Statement of Capital WorksFor the four years ending 30 June 2020

2016/17 2017/18 2018/19 2019/20$’000 $’000 $’000 $’000

PropertyLand 0 0 0 0Land improvements 98 40 0 0Total land 98 40 0 0Buildings 4,298 7,455 819 701Building improvements 1,751 1,934 1,866 1,875Total buildings 6,049 9,389 2,685 2,576Total property 6,147 9,429 2,685 2,576Plant and equipmentPlant, machinery and equipment 755 1,650 650 950Computers and telecommunications 157 157 157 157Library books 53 53 53 53Total plant and equipment 965 1,860 860 1,160InfrastructureRoads 3,785 2,780 3,280 3,780Bridges 153 153 153 153Footpaths and cycleways 295 295 295 295Drainage 165 150 150 150Recreational, leisure and community 695 230 835 565Parks, open space and streetscapes 1,692 0 500 500Other infrastructure 40 40 40 40Total infrastructure 6,824 3,648 5,253 5,483Total capital works expenditure 13,936 14,937 8,798 9,219

Represented by:New asset expenditure 4,785 4,100 896 1,391Asset renewal expenditure 7,396 7,032 7,045 7,560Asset upgrade/expansion expenditure 1,755 3,805 857 268Total capital works expenditure 13,936 14,937 8,798 9,219




2.6 Statement of Human ResourcesFor the four years ending 30 June 2020

2016/17 2017/18 2018/19 2019/20$’000 $’000 $’000 $’000

Staff expenditureEmployee costs - operating 11,354 11,694 12,045 12,406Employee costs - capital 595 608 622 636Total staff expenditure 11,949 12,302 12,667 13,042

EFT EFT EFT EFTStaff numbersEmployees 129.78 129.78 129.78 129.78Total staff numbers 129.78 129.78 129.78 129.78

Department 2016/17 2017/18 2018/19 2019/20$'000 $'000 $'000 $'000

Community Services - Permanent Full Time 1,409 1,451 1,495 1,539 - Permanent Part Time 1,697 1,748 1,801 1,855Total Community Services 3,106 3,199 3,295 3,394Corporate Services - Permanent Full Time 1,381 1,422 1,465 1,509 - Permanent Part Time 614 632 651 671Total Corporate Services 1,995 2,054 2,116 2,179Executive Services - Permanent Full Time 965 994 1,023 1,054 - Permanent Part Time 447 461 475 489Total Executive Services 1,412 1,454 1,498 1,543Infrastructure - Permanent Full Time 3,602 3,710 3,821 3,935 - Permanent Part Time 218 224 231 238Total Infrastructure 3,819 3,934 4,052 4,173Casuals and other 1,022 1,052 1,084 1,116Capitalised labour costs 595 608 622 636Total staff expenditure 11,949 12,302 12,667 13,042

A summary of human resources expenditure categorised according to the organisational structure of Council isincluded below:





2016/17 2017/18 2018/19 2019/20Department FTE FTE FTE FTECommunity Services - Permanent Full Time 15.0 15.0 15.0 15.0 - Permanent Part Time 22.8 22.8 22.8 22.8Total Community Services 37.8 37.8 37.8 37.8Corporate Services - Permanent Full Time 15.0 15.0 15.0 15.0 - Permanent Part Time 7.7 7.7 7.7 7.7Total Corporate Services 22.7 22.7 22.7 22.7Executive Services - Permanent Full Time 9.0 9.0 9.0 9.0 - Permanent Part Time 5.4 5.4 5.4 5.4Total Executive Services 14.4 14.4 14.4 14.4Infrastructure - Permanent Full Time 45.0 45.0 45.0 45.0 - Permanent Part Time 2.8 2.8 2.8 2.8Total Infrastructure 47.8 47.8 47.8 47.8Total 122.64 122.64 122.64 122.64Casuals and other 0.75 0.75 0.75 0.75Capitalised labour costs 6.39 6.39 6.39 6.39Total staff numbers 129.78 129.78 129.78 129.78

A summary of the number of full time equivalent (FTE) Council staff in relation to the above expenditure is included below:




11.5. PROPOSED RATING STRATEGY 2016


In providing this advice to Council as the Manager Finance and Information Technology, I Trafford Thompson , have no interests to disclose in this report.

PURPOSE

The purpose of this report is to present to Council the proposed Rating Strategy 2016 for adoption.

BACKGROUND

Council's current Rating Strategy was adopted in 2011.

A Rating Strategy is the method used by Council to consider issues of importance regarding the rating system. The rating system determines how Council will raise income from properties within the shire. It does not influence the total amount of money to be raised, only the amount of income contributed by each property. The strategy seeks to achieve equity in how rate revenue is raised.

ISSUE/DISCUSSION

Council has undertaken a review process, including a range of community engagement, to update the Rating Strategy from 2011. A draft rating strategy was provided to the April 2016 Ordinary Meeting of Council. The draft Rating Strategy was made available for public inspection and written submissions sought. No written submissions were received.

The Rating Strategy guides Council in setting rates and charges. As such the strategy includes some rates and charges, such as a municipal charge, that is permitted to be charged by the Local Government Act 1989, but is presently not charged by Council. The inclusion of various differential property types permits changes to be made by Council through the annual budget process in future years.

Changes included in the 2016 strategy are:

• Introduction of two additional property types Commercial - Vacant Premises and Industrial - Vacant Premises;

• Amend the vacant differential description to include these property types; • Amend the differential for commercial, industrial and mixed use to permit the

mixed use differential less than commercial or industrial. • Amend the definition for Recreation Rate differential to exclude venues with

Gaming machines, with the building component to be separately rated as Commercial;

• Amend the Waste Management Charge to permit a reduced charge to vacant property types, to a minimum of 50% of the full Waste Management Charge;

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• Introduction of a property development rebate which could be used in conjunction with an increased differential for vacant land to encourage development.

The proposed Rating Strategy 2016 is included in Attachment 5



Strategic Objective – Sustainable Financial Management Systems and Innovative Corporate Systems


19. Implement sustainable financial practices and policies that guide the future financial direction of Council and ensure long term financial stability.

Action: Review and update the Rating Strategy


Council’s Rating Strategy is premised around the concept of revenue neutrality and does not influence the total amount of money that will be raised annually. Any reduction provided to one group of ratepayers through a lower differential rate must be borne by increases to other ratepayers.

The determining of rates and charges is set by the annual budget process in accordance with the long term financial plan and in conjunction with rate capping imposed by the State Government.

RISK IMPLICATIONS

If the Rating Strategy is too prescriptive or limiting it will restrict Council’s ability to vary the annual rates and charges for the life of the adopted strategy.


Initiatives were raised in the consultation process for lower rates for properties that have solar panels. Also a lower differential for organic/biodynamic farms was proposed. It is considered that these initiatives can be better addressed outside the Rating Strategy through Economic Development and Sustainability strategies.


Council has undertaken a range of consultation methods to seek community input and suggestions during the review, including two public meetings, an online OurSay forum and hard copy submissions.

The key question posed during consultation was “How should different property types be levied?” Online , 19 ideas were received, 56 votes logged for those ideas

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and 9 comments recorded. In addition, further ideas were submitted by councillors and officers for consideration.

The draft Rating Strategy 2016 was made available to the public for further feedback prior to Council considering it for adoption.

CONCLUSION

The Rating Strategy has been reviewed to enhance how Council equitably rates property owners, has been made available for public comment and is now ready for adoption by Council.


11.5.1. That Council adopts the Rating Strategy 2016 and makes it available on Council's website and at its service centres in Daylesford, Creswick and Clunes

MOTION

11.5.1. That Council adopts the Rating Strategy 2016 and makes it available on Council's website and at its service centres in Daylesford, Creswick and Clunes


Seconded: Councillor Pierre Niclas

Carried

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ATTACHMENT 5 - PROPOSED RATING STRATEGY 2016

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HEPBURN SHIRE COUNCIL T: 03 5348 2306 www.hepburn.vic.gov.au [email protected]

PROPOSED RATING STRATEGY

2016

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TABLE OF CONTENTS

P a g e 2

Why are rates needed? .............................................................................................. 3

What is a rating strategy and why is it important? .................................................... 3

Rates and Taxation – the problems with property taxation ...................................... 4

The Rating System – What does the Act Allow? ........................................................ 5

Rating Principles “equity versus fairness” ................................................................. 6

Hepburn Shire Council’s Rating Strategy .................................................................. 7

1 Property Types ..................................................................................................... 7

2 Differential Rates ................................................................................................. 8

3 Special Rates and Charges ................................................................................ 11

4 Municipal Charge .............................................................................................. 12

5 Rebates and Incentives ...................................................................................... 13

6 Service Charges ................................................................................................. 14

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PROPOSED RATING STRATEGY: 2016

P a g e 3

Why are rates needed? The amount of rates collected by Council depends on mindful and measured choices as to the quantity and quality of services that it decides to provide and how much of the cost is to be recovered from other revenue sources.

The amount collected in rates represents the difference between the total expenses required by Council to fund programs, maintain assets and to service and redeem debt, and the total revenue from all other sources. Other revenue sources include

• Grants from Federal and State Governments

• Fees, fines and charges

• Income from the sale of assets and interest earned.

What is a rating strategy and why is it important?

A rating strategy is the method by which Council systematically considers factors of importance that informs its decisions about the rating system. The rating system determines how Council will raise money from properties within the municipality. It does not influence the total amount of money to be raised, only the share of revenue contributed by each property.

The Local Government Act 1989 (the Act) requires that the rating system provides a “reasonable degree of stability in the level of the rates burden” therefore it is important that a rating strategy is set and this guides the budget, rather than changes being made on an annual basis.

The rating strategy must also link with other Council strategies and key planning documents.

A rating strategy comprises a number of components including:

• A review of rationales and objectives

• Related research;

• The development of definitions;

• Comprehensive rate modelling;

• An education program;

• The development of required documentation; and

• Opportunity for public review /consultation.

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P a g e 4

Rates and Taxation – the problems with property taxation

Other levels of Government have the power to levy taxes on income, labour, consumption, transactions and production.

The Commonwealth levies taxes on the income of individuals, businesses and non-residents, good and services (GST), fringe benefits and superannuation. The States receive the net GST revenues collected by the Commonwealth and also have access to payroll taxes, stamp duties, land taxes and taxes on gambling and vehicle use. Meanwhile, Local Government is heavily reliant on property taxation.

Local Government’s reliance on rates as a single tax source means that it has a particularly narrow tax base and therefore Council tax revenues do not have the same prospects for growth. The relationship between property rates and capacity to pay is also more questionable. Taxes on personal income, consumption and production levels are much more closely aligned with capacity to pay than a tax on real property. Property taxes do not recognise the situation where ratepayers are “asset rich” and “income poor”. In these cases ratepayers may have considerable wealth reflected in the property they own but have a low level of income.

It is not possible to expect a property tax system to deal practically with the issue of capacity to pay based on the circumstances of individual households and businesses. The State Government payment of a pensioner rate rebate is in effect recognition of the limitations of property tax for this particular group.

Local Government rates are also the most visible of taxes. They are to be paid annually by property owners, most often payable via four instalments. This compares with income and consumption taxes that are being continuously paid by individuals.

Hepburn Shire Council, together with other councils, will continue to lobby Federal and State Government to increase their funding support for Local Government.

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P a g e 5

The Rating System – What does the Act Allow?

Section 3C of the Act sets out the “Objectives of a Council”, which include objectives to ensure:

• That resources are used efficiently and effectively; and

• The equitable imposition of rates and charges.

In addition, under “Principles of sound financial management” in section 136, a Council must “pursue spending and rating policies that are consistent with a reasonable degree of stability in the level of the rates burden.”

The Act gives Councils a number of choices in how rates can be spread across the community. Section 155 of the Act details what rates and charges a Council may declare:

• A flat Municipal charge, levied on all properties (with some minor exceptions). This charge can be levied “to cover some of the administrative costs of the Council”, and the total revenues raised from the municipal charge cannot be more than 20% of the total raised from the combination of municipal charge and general rates (s159 of the Act).

• Service rates or charges, of which the most common are garbage and recycling charges, typically levied per garbage bin and/or per recycling bin (s162).

• General (or ‘Ad Valorem”) rates, struck at cents in the $ of each property’s valuation, with two main facets:

- Councils can use one of three valuation systems under section 157: capital improved value (CIV ), net annual value (NAV), or site value, with differing impacts on the incidence of rates (although the vast majority of Councils now use CIV ); and

- Differential rates, with different rates in the $ struck for separate property classes. Councils using CIV can strike a wide range of differential rates however the maximum differential rate can be no more than four times the level of the lowest differential rate (s161(5)).

• Rebates or concessions (s169), primarily “to assist the proper development of the municipal district” or to assist the preservation and/or restoration of places “of historical or environmental interest”.

• Discounts, rebates and waivers, which allow a Council to vary the rates payable on a property because of the situation of the property owner. This can be either; for people in a designated group (such as the pensioner rate discount, or a group waiver under section 171a), or for individual cases of hardship (sections 142, 170 and 171 allow Councils to waiver or defer all or part of rates).

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P a g e 6

Rating Principles “equity versus fairness”

The legislation specifies a number of major objectives for the rating system:

• “the equitable imposition of rates and charges”

• “a reasonable degree of stability in the level of the rates burden”

• “Contribute to the equitable and efficient carrying out of its functions”

• “Consistent with principles of financial management”

Council’s goal is to strike a mix of rates and charges that will distribute the cost of providing Council services and facilities as fairly as possible across all ratepayer groups.

Equity is a difficult concept across a Shire. What is fair for one ratepayer may well be totally unfair for another. There are two main equity concepts used to guide the development of rating strategies, they are horizontal equity – ratepayers in similar situations should pay similar amounts and vertical equity – those who are better off should pay more than those worse off (similar to the concepts used in income tax).

Rates are essentially a wealth tax, determined on the value of property. However, other underlying principles can be debated:

• The benefit or user pays principle – some groups have more access to, make more use of , and benefit from more, specific Council services;

• The capacity to pay principle – some ratepayers have more ability to pay rates than do others with similarly valued properties;

• The incentive or encouragement principle – some ratepayers may be doing more towards achieving community and Council goals than others in areas such as environmental or heritage protection.

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P a g e 7

Hepburn Shire Council’s Rating Strategy

Council’s Rating Strategy is comprised of six elements which combine to assist Council in achieving the objective of ensuring the equitable imposition of rates and charges. These six elements are property types, differential rates, special rates and charges, municipal charge, rebates and incentives and service charges. These are discussed in the following section.

1 Property Types

Hepburn Shire currently has 11 property types and varying differentials, the different property types are defined below.

• GENERAL: Residential: rateable land which is used solely for residential purposes.

• COMMERCIAL: rateable land which is used solely for commercial purposes.

• INDUSTRIAL: rateable land which is used solely for industrial purposes.

• FARMLAND: rateable land identified and defined as farmland and which is used solely for the purpose of farming as defined in section 2(1) of the Valuation of Land Act 1960 and is deemed to be a property for primary production purposes as accepted by the Australian Taxation Office.

Per the Valuation of Land Act “Farmland” means any rateable land –

o That is not less than 2 hectares in area; and

o That is used primarily for grazing (including agistment), dairying, pig-farming, poultry farming, fish-farming, tree-farming, bee-keeping, viticulture, horticulture, fruit-growing or the growing of crops of any kind or for any combination of those activities; and

o That is used by a business –

o That has significant and substantial commercial purpose or character; and

o That seeks to make a profit on a continuous or repetitive basis from its activities on the land; and

o That is making a profit from its activities on the land, or that has a reasonable prospect of making a profit from its activities on the land if it continues to operate in the way that it is operating.

• RECREATIONAL: rateable land upon which sporting, recreational or cultural activities are conducted, including buildings which may be ancillary to such

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P a g e 8

activities. Profits from recreational land must be applied in promoting its objectives. The definition of “recreational lands” is per section 2 of the Cultural and Recreational lands Act 1964. The recreational differential will not apply to any component of the property that is used for gaming. This component will be rated as commercial.

• MIXED USE: rateable land which is not used solely for residential or commercial or farmland or industrial or recreational but is a combination of residential and at least on other category.

• TRUST FOR NATURE: rateable land which has a Trust for Nature Covenant applying to the land.

• VACANT LAND – TOWNSHIP: rateable land which does not form part of a commercial or industrial or farming enterprise or recreational purpose or upon which a residence is erected. This land must fall within township boundaries.

• VACANT LAND – OTHER: rateable land which does not form part of a commercial or industrial or farming enterprise or recreational purpose or upon which a residence is erected. This applies to all vacant land that does not meet the definition of “township” above.

• VACANT PREMISES – COMMERCIAL: vacant rateable premises which are used solely for commercial purposes.

• VACANT PREMISES – INDUSTRIAL: vacant rateable premises which are used solely for industrial purposes.

2 Differential Rates

a) General Rate

General land is the balance of land defined by exception to the general rate. The actual rating burden applying to general properties is an outcome determined by decisions to apply either higher or lower rates in the dollar of property value to other classes of property.

The equity of the general rate is therefore a by-product of the equity inherent in the setting of those other rates. In the setting of differential rates Council consciously considered their relativity to the general rate.

A higher differential for these property types has historically been based on the higher perceived benefits of Council activities and services, particularly in the area of Tourism and Economic Development.

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P a g e 9

Further, based on the wealth principle, it is assumed that those businesses that are higher valued (generally due to position), earn a greater amount and therefore have a higher capacity to pay. Further, a higher differential ensures that reasonable rate relativity is maintained between commercial and other classes of land.

Council considers that a higher differential compared to the general rate will ensure that Council’s commitment to Economic Development and Tourism is financially supported by those who receive direct benefits. The differential will be set as part of the annual budget process.

In considering the application of a differential rate, Council believes that, where it is considered that extraordinary demands on services are made by this business sector, or the special requirements of these types of businesses are being fulfilled by council expenditures, these are better addressed by the use of special rates and charges. This is discussed in section 3 of this strategy.

b) Farm Land Rate

A discounted differential of less than 100% will be available for eligible rural properties.

For a definition of which properties are eligible for this discounted differential, refer to page 7.

Evidence shows that the returns able to be realised by farming from the assets employed (including land) are lower than for other forms of land, so that its capacity to pay rates is lower. Further, Council considers that rate relief should continue to be provided to the farming/agriculture sector because of its importance both to the local economy and as a characteristic of the local environment. Further consideration is given to the fact that agricultural producers are unable to pass on increases in costs like other businesses.

Therefore Council believes a lower differential compared to the general rate will ensure that highly productive farming land is not rated at levels that force farmers to seek to subdivide and sell off parcels to remain viable.

This differential will be set as part of the annual budget process.

For a definition of what properties meet the definition of Farm Land, refer to page 7.

c) Business Commercial, Industrial and Mixed Use Land Rates

A higher differential of greater than 100% will be set for commercial, industrial and mixed use property types.

Mixed use property types may have a lower differential to commercial and industrial as mixed use involves more than one property use which is usually residential and one other.

For a definition of which properties meet the definition of commercial, industrial and mixed use refer to page 7.

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P a g e 10

d) Vacant Land or Premises

Vacant Land Rate Land – Township

A higher differential of greater than 100% will be set for vacant land that is within township boundaries.

Council considers that a specific differential is necessary to encourage the development of vacant land.

The differential will be set as part of the annual budget process.

This differential rate may be used in conjunction with a rebate to encourage property development; this is discussed in section 5 of this strategy. For a definition of which properties meet the definition of Vacant Land – Township, refer to page 8.

Vacant Land ‐ other

A separate differential will be set for vacant land that is not within township boundaries. This differential will be 100,% the same as the general rate.

Council has identified that vacant land outside townships may not be appropriate for development and therefore should not attract the same differential as Vacant Land – township.

Vacant Premises Commercial

A higher differential of greater than 100% may be set for vacant premises that are within township boundaries.

Council considers that a specific differential is necessary to encourage the occupancy of vacant premises.


Vacant Premises Industrial

A higher differential of greater than 100% may be set for vacant industrial premises that are within township boundaries.

Council considers that a specific differential is necessary to encourage the occupancy of vacant premises


e) Recreation land rate

A discounted differential of less than 100% will be available for eligible recreational lands.

For a definition of which properties are eligible for this discounted differential, refer to page 7.

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P a g e 11

Recreational land that exists for the purpose of providing outdoor, sporting, recreational or cultural purposes are important aspects of Hepburn Shire Council.

Therefore Council believes a lower differential compared to the general rate will ensure that this land is retained for this purpose and the open space is preserved.

This differential will be set as part of the annual budget process.

f) Trust for Nature Land Rate

A discounted differential of less than 100% will be available for land which has a Trust for Nature Covenant over it.

A Trust for Nature Covenant enables the permanent protecting of significant areas of natural bush land.

To encourage landowners to voluntarily place conservation covenants on their land, Council will offer a lower differential compared to the general rate.

3 Special Rates and Charges

Special rates and charges are specifically designed to address the benefit principle. They are targeted rating instruments in the sense that they focus on ratepayers that receive an exclusive or additional benefit to other ratepayers from particular Council expenditures.

a) Waste Management Charge

A flat charge will be levied to offset the costs associated with waste management, with the exception of residential and commercial waste collection, within the Shire.

Council considers that it is equitable that all properties make a standard contribution reflecting the costs of the transfer stations and any other costs associated with keeping the Shire clean and tidy. This includes street cleaning and street litter bin collection and the provision of tip vouchers where a garbage collection service is not taken up and/or unavailable.

A flat charge will ensure all improved properties, regardless of their size or valuation, contribute the same dollar amount. Vacant properties will contribute a minimum of 50% of this flat charge towards the provision of waste management services within the Shire, with the exception of specific collection charges.

In line with Council being transparent, a special charge clearly shows ratepayers the total costs associated with waste management.

The charge will be set as part of the annual budget process.

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P a g e 12

b) New Project(s) Charge

Special rates and /or charges will be used by Council where appropriate.

A specific charge will ensure revenue is received from only those properties that benefit from a specific project; this may be the entire rate base, a specific property type or a specific geographical area of the Shire.

As with the Waste Management Charge, a special charge also provides transparency for ratepayers on the costs of the particular project.

An example of such a charge is an environmental charge which would be charged to those properties that benefit from the project(s). Another example is marketing of a specific town within the Shire, the primary benefit from the collection of a special rate or charge from traders within that town is to the income of those traders.

The consideration of a special charge scheme needs to be considered in the pricing policies for services and whether revenue collection issues would be better addressed by general rates or user charges.

Under sections 142 and 171 of the Act, Council has the option to waive part or all of rates owing on a property for a designated group or for individual cases of hardship. Council considers that such a waiver would be provided to support the Economic Development of the Shire. The use of any discounts and waivers would need to be considered in conjunction with differential rates for vacant land – township and differential rates for commercial, industrial and mixed use business as discussed in section 1 of this strategy.

4 Municipal Charge The Municipal charge is a legislated option that may applied as a base charge reflecting a proportion of base / administrative costs associated with Council.

Council is able to levy a municipal charge on each rateable property within the municipality with the exception of farms where a single municipal charge is payable on multiple assessments operated as part of a single farm enterprise.

Council may decide that all properties make a standard contribution to some administrative costs and that the municipal charge is a useful means of achieving this contribution. A flat charge will ensure all properties, regardless of their size or valuation, contribute the same dollar amount towards the operation of the Council.

The charge, if applied, will be set as part of the annual budget process.

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P a g e 13

5 Rebates and Incentives

The legislation intended that differential rates be used to achieve an outcome for a class of properties. Rebates and concessions should be used with respect to individual properties within a property class.

a) Pensioner Rate Concession

An additional rebate for pensioners will be made available.

Pensioners within the Hepburn Shire don’t just exist within the general rate class or in smaller, lower valued properties. Australian Bureau of Statistics Socio-Economic Indexes for Areas (SEIFA scores) imply that there are a number of areas within the Hepburn Shire that rank in the 10%-20% of most disadvantaged areas across Australia.

Therefore, Council believes that an additional concession will support pensioners who may have high value properties, but reduced capacity to pay.

Those who qualify under the State Government's Pensioner Rate scheme will be eligible. The value of the rebate will be set as part of the annual budget process.

b) Economic Development

Discounts or waivers, which vary the rates payable on a property, may be made available.

Economic Development, in particular investment in local businesses and employment opportunities are a key focus of the Hepburn Shire.

The Hepburn Shire Economic Development Strategy suggests that Council should investigate incentives to encourage property owners to improve and invest in commercially zoned streets.

c) Environmental

A rebate may be made available to encourage sustainable land management.

Environmental sustainability is another key focus of the Hepburn Shire. Council believes there is a need to develop a program to encourage sustainable land management practices and the implementation of these principles on properties.

This rebate would both financially reward landowners for work in this area and also aid in preserving the Shire’s natural environment.

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P a g e 14

The value of the rebate will be set as part of the annual budget process and will be subject to meeting specific criteria.

d) Property Development

A rebate may be made available to encourage development on Vacant Land – Township properties.

When development occurs on Vacant Land – Township, a two year rebate reducing the differential to 100% will be applied when a Certificate of Occupancy is issued on the development. (This rebate will only be backdated to the date of purchase if less than two years of ownership).

The decision to make this rebate available will occur as part of the annual budget process. If applied, the estimate value of the rebate will be included in the relevant budget.

6 Service Charges

Separate service charges will be used by Council where appropriate.

A unit charge is normally levied on each property that receives or can access the service. The recipient of the benefit of this service can clearly be identified as the property to which it is provided.

This is considered preferable to levying a service rate based on property value where there would be no correlation between consumption of services and the level of rates paid.

A specific charge also provides transparency for ratepayers on the costs of the particular service.

Examples of service charges include the roadside garbage collection charge and the roadside recycling collection charge.

The value of any service charge and the properties that it applies to will be set as part of the annual budget process.

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11.6. EFFICIENCY SAVINGS AND FUTURE DEBT MANAGEMENT


In providing this advice to Council as the General Manager Corporate Services, I Grant Schuster have no interests to disclose in this report.

PURPOSE

The purpose of this report is for Council to consider an allocation to a Debt Management discretionary financial reserve from savings achieved in the 2015/16 financial year.

BACKGROUND

Through prudent financial management and organisational restructure over the past two years, Council has achieved significant operational savings in the 2013/14, 2014/15 and 2015/16 financial years.

In both June 2014 and June 2015 Council resolved to allocate savings to make additional debt reduction payments.

ISSUE/DISCUSSION

Sustainable Financial Management and Innovative Corporate Systems is a Strategic Objective of the Hepburn Shire Council. Through the implementation of sustainable financial practices and policies, Council can ensure the long term financial sustainability of the Shire.

Using debt to fund projects has the benefit of spreading the cost over multiple years and increasing inter-generational equity. However, inefficient debt and cash use can result in unnecessary costs. Minimising debt drawn down and using efficient options, such as the Local Government Funding Vehicle, help to minimise the costs. Putting aside money regularly into a Debt Management reserve is a useful mechanism to assist this.

As our Local Government Funding Vehicle loan for the Defined Benefits Superannuation call is an interest only loan, it is prudent to put aside $200,000 a year. Council has done this in its cash budgets in 2014/15 and 2015/16. This year, it is proposed to specifically itemise the cumulative total of $400,000 in a Debt Management Reserve in our financial statements for 2015/16.

In addition, savings have been identified this year with the goal to use these savings to improve Council's financial position and reduce financing costs over the long-term. In previous years, similar savings have been applied to reducing debt. From review of Council's current debt portfolio, which is all fixed rate loans, there is no saving to be made from paying down existing debt early. Alternatively, using these funds in future budgets to reduce new borrowings, such as that identified for the Hepburn Community and Council Services Hub project, forecast in 2017/18, will

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reduce costs to Council. This can be achieved through putting the funds aside in the Debt Management discretionary financial reserve that can be drawn on by Council as an alternative to future loans.

Operational savings and increased revenue achieved during the 2015/16 year are as follows:

Saving Value ($s)

Extra interest earned due to active treasury management $24,000

Reduction in interest payments due to early loan repayments $60,000

Recruitment cost savings including not having to advertise CEO $35,000

Legal fee savings $16,500

Community housing - extra income $15,000

Community services salary saving $17,500

Recreation salary saving from vacancy $15,000

Telecommunication savings from new VOIP system and mobile phone contract changes

$35,000

Corporate services salary saving from vacancies $12,000

Workcover insurance premium saving and prior year refund $80,000

Increased planning permit income $90,000

Insurance savings, particularly industrial special risks $35,000

Further electricity and maintenance savings on street lighting $15,000

Total $450,000

Therefore, it is proposed to specifically set aside $450,000 in the Debt Management Reserve in our financial statements for 2015/16 to reduce future borrowings.


Council Plan 2013-2017:

Strategic Objective – Sustainable financial management and innovative corporate systems


19. Implement sustainable financial practices and policies that guide the future financial direction of Council and ensure long term financial stability.

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Funds that are in the Debt Management financial reserve can be allocated to capital projects that are planned to utilise new loans to fund them. As a result, future loan repayments will be reduced and the overall cost to Council minimised.

The Debt Management financial reserve will also be used in the 2015/16 financial statements to identify funds set aside ($200,000 per year) to repay the Local Government Funding Vehicle Defined Benefits Scheme loan of $1.4 million when it becomes due in 2021/22.

RISK IMPLICATIONS

If the financial reserve is greater than forecast future loan needs then Council could be considered to be inefficiently using its cash resources. The Debt Management financial reserve is not expected to reach this point over the four years of Council's Strategic Resource Plan.


None of note.


Internal engagement has occurred to achieve and confirm operational savings.

CONCLUSION

By putting aside $450,000 from operational savings, Council can reduce its future debt raising requirements, and therefore will save on future interest payments.


11.6.1. That Council resolves to set aside the operational savings from 2015/16 of $450,000 in a discretionary financial reserve for Debt Management to be used to reduce the amount of new loans on future projects, in addition to the $200,000 per year set aside to repay the Local Government Funding Vehicle loan principle in 2021/22.

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MOTION

11.6.1. That Council resolves to set aside the operational savings from 2015/16 of $450,000 in a discretionary financial reserve for Debt Management to be used to reduce the amount of new loans on future projects, in addition to the $200,000 per year set aside to repay the Local Government Funding Vehicle loan principle in 2021/22.



Carried

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11.7. PROPOSED AMENDMENT C66 – TOWN CENTRE ACTIVITY PRECINCT – INTRODUCE MIXED USE ZONE - HEPBURN SPRINGS


In providing this advice to Council as the Strategic Planner, I Joan Copland have no interests to disclose in this report.

PURPOSE

The purpose of this report is to seek Council approval to seek authorisation from the Minister for Planning to prepare and exhibit an amendment to rezone land in Hepburn Springs to a Mixed Use Zone.

BACKGROUND

The Hepburn Structure Plan identifies the potential to apply a Mixed Use Zone in Hepburn Springs. Further strategic justification has been established to obtain authorisation from the Minister for Planning to proceed with the amendment.

Clause 21.05 (Settlement and Housing) of the Hepburn Planning Scheme includes a number of Structure Plans for the major townships in the municipality, including Hepburn Springs. The Hepburn Springs Structure Plan provides a framework for future development and identifies an area along both sides of Main Road (between 65 Main Road and 131 Main Road) adjoining the existing Commercial 1 zoned land as a ‘Town Centre Activity Precinct’. The objective of this precinct is to ‘Encourage mixed use (business, residential), to maintain and enhance pedestrian scale and strengthen village atmosphere’ (Refer Attachment 6).

ISSUE/DISCUSSION

The proposed application of the Mixed Use Zone will provide a greater opportunity for a wider variety of commercial uses than is possible under current planning controls, whilst still providing for residential use. (Refer Attachment 7).

There are a number of existing overlays that also apply to the land; these will not be altered apart from the application of a new Design and Development Overlay Schedule to the Mixed Use Zone precinct. This overlay will implement the vision articulated through the Hepburn Streetscape Strategy and the Structure Plan to create a ‘village atmosphere’ and pedestrian focus. It will also include design requirements that will assist in protecting adjoining residential amenity.

KEY ISSUES

• The proposed amendment seeks to introduce the Mixed Use Zone. • The Design and Development Overlay will include design requirements that

will assist in protecting adjoining residential amenity.

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• Strategic support for the amendment is provided through the Hepburn Planning Scheme, Council’s draft Economic Development Strategy and the Central Highlands Regional Growth Plan.

COUNCIL PLAN / LEGISLATIVE COMPLIANCE

Amendment C66 is consistent with the Ministerial Direction on the form and content of Planning Schemes under Section 7 of the Planning and Environment Act 1987.

The exhibition of the amendment must be carried out in accordance with Section 19 of the Planning and Environment Act 1987.


Any planning scheme amendment that is exhibited by Council may be subject to a Planning Panel hearing and may incur costs.

RISK IMPLICATIONS

Not applicable

ENVIRONMENTAL / SOCIAL / ECONOMIC IMPLICATIONS

The amendment will facilitate the use and development of additional land within Hepburn Springs for commercial activity while still retaining the option for residential use which predominates under the current zoning.

The rezoning will support economic activity consistent with both state and local planning policy.


Formal consultation is required under the Planning and Environment Act 1987. The Planning Scheme Amendment must be exhibited for a period of one month. Council must consider all submissions, and any submissions that cannot be resolved must be referred to an independent Planning Panel

CONCLUSION

The amendment has appropriate strategic support through the state and local planning policies in the Hepburn Planning Scheme, Council’s draft Economic Development Strategy and the Central Highlands Regional Growth Plan.


That Council:

11.7.1. Resolves to seek authorisation from the Minister for Planning to prepare Amendment C66 to the Hepburn Planning Scheme to rezone land in Hepburn Springs to Mixed Use Zone.

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11.7.2. Subject to Ministerial approval, resolves to place the amendment on exhibition for a period of one month.

MOTION

That Council:

11.7.1. Resolves to seek authorisation from the Minister for Planning to prepare Amendment C66 to the Hepburn Planning Scheme to rezone land in Hepburn Springs to Mixed Use Zone.

11.7.2. Subject to Ministerial approval, resolves to place the amendment on exhibition for a period of one month.



Carried

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ATTACHMENT 6 - HEPBURN SPRINGS STRUCTURE PLAN

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ATTACHMENT 7 - PROPOSED MIXED USE ZONE

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11.8. COMMUNITY PLANNING IMPLEMENTATION FUND 2015-16


In providing this advice to Council as the Community and Cultural Development Officer, I Kate Gerritsen have no interests to disclose in this report.

PURPOSE

The purpose of this report is for Council to recommend that Council approve two applications made to the Community Planning Implementation Fund as part of Round 2 of the 2015-16 Community Grants Program.

BACKGROUND

The Community Planning Implementation Fund was initiated in the 2015-16 financial year as a way to empower communities to realise priority projects nominated in community plans. The total funds available in 2015-16 are $50,000 with $15,000 already allocated for the Smeaton parkland project.

ISSUE/DISCUSSION

In Round 2 of the 2015-16 community grants program two applications were received to access the Community Planning Implementation Fund these were from:

• The Clunes Landcare and Waterways group; • Clunes Neighbourhood House.

The applications are in line with priority projects - Youth facilities and/or Activities and Creekscape listed in the 2015 Clunes Community Plan.

The applications are for Creswick Creek, Clunes – Art in Nature Walk (Stage One) and Proposed Free Form Play-space / Performance Area (at Lee Medlyn Home of Bottles).

The volunteer community groups applying for the funds will partner with other community groups to deliver the two proposed projects including: the Clunes Men’s Shed, Youth 3370 group, Lee Medlyn Home of Bottles Committee, Clunes Museum, Wesley College, Clunes Primary School, Creative Clunes and Clunes Tourism Development Association.

Council Officers are working with both groups to obtain relevant permissions and permits from Council departments and the Catchment Management Authority.



Strategic Objective – Active and Engaged Communities


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1. Support community groups through provision of advice, information and community grants


Council Officers recommend that each project be funded $17,500 which will expend the remaining $35,000 in the 2015-16 Community Planning Implementation Fund.

RISK IMPLICATIONS

Community groups will be allocated funds and manage risk onsite for each project. Council officers will apply check points to funded projects to ensure delivery.


Environment issues for Clunes Landcare and Waterways proposed project will be discussed further with the North Central Catchment Management Authority.

COMMUNITY AND STAKEHOLDER ENGAGEMENT Over 90 Clunes residents participated in a community survey and 60 residents attended community meetings, to develop the Clunes Community Plan in 2015. The recommended applications are both in line with priority projects listed in the Plan.

CONCLUSION

The two applications from the Clunes Landcare and Waterways group and Clunes Neighbourhood House will assist to deliver priority projects ‘Youth facilities and /or Activities’ and ‘Creekscape’ nominated by the Clunes community in the 2015 Clunes Community Plan.


That Council:

11.8.1. Approves the allocation of $17,500 to the Clunes Landcare and Waterways Group to deliver stage 1 of the Art in Nature Project by 30 June 2017

11.8.2. Approves the allocation of $17,500 to the Clunes Neighbourhood House to deliver the Free Form Play-space / Performance Area (at Lee Medlyn Home of Bottles) by 30 June 2017

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MOTION

That Council:

11.8.1. Approves the allocation of $17,500 to the Clunes Landcare and Waterways Group to deliver stage 1 of the Art in Nature Project by 30 June 2017

11.8.2. Approves the allocation of $17,500 to the Clunes Neighbourhood House to deliver the Free Form Play-space / Performance Area (at Lee Medlyn Home of Bottles) by 30 June 2017



Carried

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11.9. LEASE RENEWAL – CRESWICK AND DISTRICT ELDERLY CITIZENS WELFARE COMMITTEE INCORPORATED AND THE CRESWICK SENIOR CITIZEN’S CENTRE INC. TO OCCUPY CRESWICK SENIOR CITIZENS CENTRE.

GENERAL MANAGER INFRASTRUCTURE

In providing this advice to Council as the Property Officer, I Karen Ratcliffe have no interests to disclose in this report.

PURPOSE

The purpose of this report is to seek Council approval to renew the Council lease for the Creswick and District Elderly Citizens Welfare Committee Inc and the Creswick Senior Citizen’s Centre Inc (the Committee) to occupy the Creswick Senior Citizens Centre at 2 Water Street, Creswick.

BACKGROUND

Council is the owner of the Creswick Senior Citizens Centre. At the August 2007 Council meeting, Council renewed the lease for a further 9 years.

The lease expired on 31 December 2015 and following negotiations with Council officers the Committee has sought to have the lease renewed until 30 June 2019.

ISSUE/DISCUSSION

The option in the current lease is to renew for a final 2 years which would expire 31 December 2017.

A new longer term lease can be negotiated immediately, however, this is not recommended due to the uncertainty that exists with HACC Seniors Support funding arrangements beyond 2019 and would potentially require the term to be amended depending on the circumstances in 2019.

Therefore, it is proposed to renew the lease until 30 June 2019 after which time a new longer term lease can be negotiated. The Committee is in agreement with this proposal.

The terms and conditions of the current lease are not proposed to be changed.


Council Policy 9: Council Owned & Controlled Property requires that appropriate written occupancy arrangements be in place to support good governance objectives and principles


There are no significant financial implications regarding the issue of a lease to the Committee. The annual lease fee of $104 + GST, for community based organizations must be paid.

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RISK IMPLICATIONS

The lease requires the Committee to hold public liability insurance of $20m.


Council recognises that the Committee provides important social connection and benefits for the community.


Council officers have worked in conjunction with the Committee regarding the proposed lease.

CONCLUSION

A Deed of Renewal of Lease of the Creswick Senior Citizens Centre to 30 June 2019 is presented for Council’s approval.


That Council:

11.9.1. Grants to the Creswick and District Elderly Citizens Welfare Committee Inc and the Creswick Senior Citizen’s Centre Inc a lease ending 30 June 2019 to occupy the Creswick Senior Citizens Centre at 2 Water Street, Creswick in accordance with the attached Deed of Renewal document.

MOTION

That Council:

11.9.1. Grants to the Creswick and District Elderly Citizens Welfare Committee Inc and the Creswick Senior Citizen’s Centre Inc a lease ending 30 June 2019 to occupy the Creswick Senior Citizens Centre at 2 Water Street, Creswick in accordance with the attached Deed of Renewal document.



Carried

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ATTACHMENT 8 - DEED OF RENEWAL OF LEASE – CRESWICK SENIOR CITIZENS CENTRE INC.

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1

DEED OF RENEWAL OF LEASE FOL/10/3172 Prop: 12079 This Deed is executed on the date below. PARTIES 1. HEPBURN SHIRE COUNCIL ABN 76 845 763 535 (Landlord) 76 Vincent Street, Daylesford, Vic 3460 2. CRESWICK AND DISTRICT ELDERLY CITIZENS WELFARE COMMITTEE INC. Registration No A0035027W (Tenant) 2 Water Street, Creswick Vic 3363 3. CRESWICK SENIOR CITIZEN’S CENTRE INC. Registration No A0022642P (Tenant) 2 Water Street, Creswick Vic 3363 RECITALS

1. The Landlord is the registered proprietor of the land and improvements known as 2 Water Street Creswick – the Creswick Senior Citizen’s Centre - and more particularly described in Certificate of Title Vol 8903 Folio 247 (the Premises).

2. The Tenants are the tenants of the Premises pursuant to a Lease executed on 16

June 2009 (original lease) – a copy of the original lease is annexed to this Deed.

3. The Tenants have requested and the Landlord has agreed to vary the option to renew referred to in the original Lease from Two (2) years to Three (3) years and Six (6) months.

4. The Tenants have exercised the varied option to renew referred to in the original Lease and the Parties have agreed to evidence the renewal of the term of the original lease by this Deed.

5. The Parties have agreed on the terms of renewal as set out below in the Operative Part of this Deed.

OPERATIVE PART

1. The Lease is varied as follows – (a) Clause 7 (a) “$5,000,000.00” is deleted and replaced with “$20,000,000.00”; (b) Clause 14 (1) is deleted.

2. The Lease is renewed for a term of Three (3) years and Six (6) months commencing on 1 January 2016 and expiring at midnight on 30 June 2019 upon the same terms and conditions as contained in the original lease except as varied in Clause 1(b).

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2

EXECUTED by the PARTIES as a DEED on ______________________________________ (Date) The Common Seal of CRESWICK AND DISTRICT ELDERLY CITIZENS WELFARE COMMITTEE INC Registration No A0035027W was affixed in accordance with its Constitution and the Associations Incorporation Act 1981 in the presence of: ___________________________ _____________________________ Signature Committee Member Signature Committee Member/Public Officer ___________________________ _____________________________ (Print name) (Print Name) ____________________________________ ____________________________________ (Address) (Address) The Common Seal of CRESWICK SENIOR CITIZEN’S CENTRE INC Registration No A0022642P was affixed in accordance with its Constitution and the Associations Incorporation Act 1981 in the presence of: ___________________________ _____________________________ Signature Committee Member Signature Committee Member/Public Officer ___________________________ _____________________________ (Print name) (Print Name) ____________________________________ ____________________________________ (Address) (Address) THE COMMON SEAL of HEPBURN SHIRE COUNCIL ABN 76 845 763 535 was affixed on authority of the Council pursuant to Local Law No.1 in the presence of: __________________________________________ Neil Newitt - Mayor __________________________________________ Aaron van Egmond - Chief Executive Officer

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3

ANNEXURE - Original Lease follows:-

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11.10. LIABILITY MUTUAL INSURANCE SCHEME (PUBLIC AND PRODUCTS LIABILITY INSURANCE AND PROFESSIONAL INDEMNITY INSURANCE) RENEWAL 2016-2017


In providing this advice to Council as the Manager Strategic Asset Management, I Steve Millard have no interests to disclose in this report.

PURPOSE

The purpose of this report is for Council to approve the renewal of Council’s Liability Mutual Insurance for 2016-2017 through MAV Insurance.

BACKGROUND

Under section 76A of the Local Government Act 1989 (‘Act’), Council is required to hold both public and products liability insurance and professional indemnity insurance. Council complies with this requirement by participating in the Liability Mutual Insurance Scheme approved by the Minister for Local Government (section 76A (2) of the Act) administered by MAV Insurance.

Broadly, these insurances cover Council in the event of claims by third parties for injury (including death), damages or other losses that may be suffered as a result of Council’s negligence or breach of its duty of care.

ISSUE/DISCUSSION

Council has received a Renewal Proposal from MAV Insurance for 2016-2017. Proposal documentation has been completed and returned to MAV Insurance in order to determine premiums.

Under the Scheme, all participating councils are covered for $400m public and products liability and $300m for professional indemnity.


As the Minister for Local Government has approved participation by Victorian councils in a mutual liability scheme, Council is not required to tender for this service under section 186 of the Act even though the premium is likely to exceed $150,000.


The premium for these classes of insurance for 2016-2017 has not yet been determined by MAV Insurance. However, based on Council’s claims history for 2015-2016, preliminary advice received from MAV Insurance indicates that Council’s anticipated premium increase over its 2015-2016 premium will be approximately 1-2%. This level of increase will be in line with the overall Scheme movements for all

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members. A 1-2% increase will equate to an annual premium for 2016-2017 of between $163,716 and $164,792 (excluding GST).

However, as major claims prior to 30 June by Scheme members can have an immediate impact on premiums for the ensuing year, it is recommended that Council approves payment up to a 5% increase ($170,000).

RISK IMPLICATIONS

Insurance is considered to be essential for the prudent management of Council’s affairs and is a primary control in relation to the mitigation of many risk items on Council’s Risk Register.

Major claims under these classes of insurance may run to several millions of dollars.


No environmental/social/economic implications noted.


No community or stakeholder engagement required nor undertaken.

CONCLUSION

It is a statutory requirement for all Victorian councils to take out and maintain public and products liability insurance and professional indemnity insurance in order to protect the financial interests of the community.


That Council resolves to authorise the Chief Executive Officer to:

11.10.1. Place Council’s public and products insurance and public liability insurance with MAV Insurance for the period 2016-2017; and

11.10.2. Approve payment of the premium for public and products liability insurance and professional indemnity insurance for 2016-2017 for an amount up to $170,000 (excluding GST)

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MOTION

That Council resolves to authorise the Chief Executive Officer to:

11.10.1. Place Council’s public and products insurance and public liability insurance with MAV Insurance for the period 2016-2017; and

11.10.2. Approve payment of the premium for public and products liability insurance and professional indemnity insurance for 2016-2017 for an amount up to $170,000 (excluding GST)



Carried

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11.11. REQUESTS FOR APPROVAL TO OPERATE B-DOUBLES AND HIGHER MASS LIMIT VEHICLES ON LOCAL COUNCIL ROADS


In providing this advice to Council as the Property & Assets Coordinator , I Mahmud Kaiser have no interests to disclose in this report.

PURPOSE

The purpose of this report is for Council to consider new requests to use B-doubles and Higher Mass Limit [HML] vehicles on local roads.

BACKGROUND

The following requests for new permits and renewal of existing permits have been received from the National Heavy Vehicle Regulator (NHVR).

Ref Organisation Vehicles Roads Load Type Time Frame as per Application

No of Trips (approx)

New Permit

a) 70908

Clearwater Logging and Transport Pty Ltd

B-double

Hyde Park Road and Armstrong Road in Creswick

General freight

22/06/2016- 22/06/2019

60 Per Year

b) 73461 Angelis Haulage Pty Ltd

Semi-Trailer combination

East Street, Daylesford (from Midland Highway to 6 East Street)

General freight

22/06/2016- 22/06/2019

20 Per Year

Renewal of Permit

c) 72023

Shannon Trial Pty Ltd

3 axle truck and 4 axle dog trailer

East Street, Daylesford (from Midland Highway to 6 East Street)

Quarry Materials

22/06/2016– 22/06/2019

104 Per Year

111


ISSUE/DISCUSSION

Council officers have assessed the applications considering the following:

• Community safety • Local amenity • Physical limitations of the network • Economic benefits • Alternative access • Cost implications to Council.

The results of the assessment are provided below along with any recommended conditions to be applied to any consent granted by Council.

NEW REQUESTS

a) Clearwater Logging and Transport Pty Ltd (Road Manager Request Number 70908):

Clearwater Logging and Transport requests that Council grants a permit for the routes which are shown in the following map:

Map 1

Requested roads have been assessed as suitable for using B-double vehicles subject to the Standard Conditions.

b) Angelis Haulage Pty Ltd (Road Manager Request Number 73461):

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Angelis Haulage Pty Ltd requests that Council grants a permit for the route which is shown in the following map:

Map 2

Requested road has been assessed as suitable for using Semi-Trailer combinations at HML subject to the Standard Conditions.

c) Shannon Trial Pty Ltd (Road Manager Request Number 72023):

Shannon Trial Pty Ltd requests that Council grants a permit for the following route which is shown in the following map:

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Map 3

Requested road has been assessed as suitable for using 3 axle truck and 4 axle dog trailers at HML subject to the Standard Conditions.

STANDARD CONDITIONS

It is the responsibility of the above permit holders to pay attention to:

• Overhead cables

• Overhanging trees

• Steep inclines/declines, tight corners and narrow roads

• Must not trim or remove any trees without all approvals being obtained

• The use of compression brakes is to be avoided in residential areas

• Hours of Operation shall be 7:00am to 6:00pm



Strategic Objective – Sustainable Environment and a Vibrant Economy


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12. Support and develop existing businesses within Hepburn Shire and continue to explore opportunities to diversify Hepburn Shire’s Economic base.


There are no expected financial implications of granting approval to the above operators to use heavy vehicles on subject Council maintained roads.

RISK IMPLICATIONS

There are no expected specific risk implications of granting approval to the above operators to use heavy vehicles on subject Council maintained roads.


There are expected to be economic benefits for local business and economic development through granting of consents for access.


No external engagement was undertaken in relation to this request. Relevant internal road staff has been involved in assessing these requests.

CONCLUSION

Council has received requests from the National Heavy Vehicle Regulator for consent to the issue of permits to operate B-doubles and Higher Mass Limit vehicles on local roads. Following a review of the requests, conditional consent is recommended for the operators as detailed.


That Council:

11.11.1. Approves Clearwater Logging and Transport Pty Ltd to use B-double vehicles for a period of 36 months commencing 22nd of June 2016 and expiring 22nd of June 2019 on Hyde Park Road and Armstrong Road in Creswick, subject to following conditions:

It is the responsibility of the permit holder to pay attention to:

• Overhead cables • Overhanging trees • Steep inclines/declines, tight corners and narrow roads • Must not trim or remove any trees without all approvals being

obtained • The use of compression brakes is to be avoided

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• Hours of Operation shall be 7:00am to 6:00pm.

11.11.2. Approves Angelis Haulage Pty Ltd to use Semi-Trailer combinations for a period of 36 months commencing 22nd of June 2016 and expiring 22nd of June 2019 on East Street in Daylesford (from Midland Highway to 6 East Street), subject to following conditions:

It is the responsibility of all the above permit holder to pay attention

to:

• Overhead cables • Overhanging trees • Steep inclines/declines, tight corners and narrow roads • Must not trim or remove any trees without all approvals being obtained • The use of compression brakes is to be avoided • Hours of Operation shall be 7:00am to 6:00pm.

11.11.3. Approves Shannon Trial Pty Ltd to use 3 axle truck and 4 axle dog trailers for a period of 36 months commencing 22nd of June 2016 and expiring 22nd of June 2019 on East Street in Daylesford (from Midland Highway to 6 East Street), subject to following conditions:

It is the responsibility of all the above permit holder to pay attention to:

• Overhead cables • Overhanging trees • Steep inclines/declines, tight corners and narrow roads • Must not trim or remove any trees without all approvals being

obtained • The use of compression brakes is to be avoided • Hours of Operation shall be 7:00am to 6:00pm.

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MOTION

That Council:

11.11.1. Approves Clearwater Logging and Transport Pty Ltd to use B-double vehicles for a period of 36 months commencing 22nd of June 2016 and expiring 22nd of June 2019 on Hyde Park Road and Armstrong Road in Creswick, subject to following conditions:

It is the responsibility of the permit holder to pay attention to:

• Overhead cables




• The use of compression brakes is to be avoided


11.11.2. Approves Angelis Haulage Pty Ltd to use Semi-Trailer combinations for a period of 36 months commencing 22nd of June 2016 and expiring 22nd of June 2019 on East Street in Daylesford (from Midland Highway to 6 East Street), subject to following conditions:


• Overhead cables






11.11.3. Approves Shannon Trial Pty Ltd to use 3 axle truck and 4 axle dog trailers for a period of 36 months commencing 22nd of June 2016 and expiring 22nd of June 2019 on East Street in Daylesford (from Midland Highway to 6 East Street), subject to following conditions:


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• Overhead cables






Moved: Councillor Greg May

Seconded: Councillor Don Henderson

Carried

Councillor Kate Redwood AM called for a division.

Councillors that voted in favour of the motion: Councillor Bill McClenaghan, Councillor Greg May, Councillor Pierre Niclas, Councillor Neil Newitt, Councillor Don Henderson

Councillors that voted against the motion: Councillor Kate Redwood AM

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11.12. RECORDS OF ASSEMBLIES OF COUNCILLORS


In providing this advice to Council as the Administration Support Officer, I Tracye Sutton have no interests to disclose in this report.

PURPOSE

The purpose of this report is for Council to receive and note Assemblies of Councillors.

BACKGROUND

The Local Government Act 1989 defines Assembly of Councillors as

…a meeting of an advisory committee of the Council, if at least one Councillor is present, or a planned or scheduled meeting of at least half of the Councillors and one member of Council staff which considers matters that are intended or likely to be -

(a) the subject of a decision of the Council; or

(b) subject to the exercise of a function, duty of power of the Council that has been delegated to a person or committee –

but does not include a meeting of the Council, a special committee of the Council, as audit committee established under Section 139, a club, association, peak body, political party of other organisation.

ISSUE / DISCUSSION

The Local Government Act 1989 (as amended) requires the record of an Assembly of Councillors to be:

1. reported at an Ordinary Meeting of the Council; and 2. incorporated in the minutes of that Council Meeting.

For this purpose, the following records of Assemblies of Councillors are reported:

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Assemblies of Councillors

Date Location Committee Name

3-05-2016 Council Chamber Councillor Briefing

17-05-2016 Trentham Mechanics Institute Councillor/CEO Meeting

17-05-2016 Trentham Mechanics Institute Pre Council Meeting


Local Government Act 1989, Section 80A


Nil

RISK IMPLICATIONS

There are implications with regards to Council’s compliance with the Local Government Act 1989 (as amended) if written records of Councillor Assemblies are not reported to Council.


The inclusion of the attached record of Councillor Assemblies in the Council Agenda and their availability to the public will increase awareness of the activities of Council and could increase community involvement in decision making at Council level.


Using Council’s adopted Community Engagement Framework, International Public Participation Consultation, this report presents information via the Council Agenda.

CONCLUSION

Information provided for noting.


That Council

11.12.1. Receives and notes the Records of Assemblies of Councillors for the 03-05- 2016 and 17-05-2016

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MOTION

That Council

11.12.1. Receives and notes the Records of Assemblies of Councillors for the 03-05-2016 and 17-05-2016



Carried

121


ATTACHMENT 9 - RECORDS OF ASSEMBLIES OF COUNCILLORS

122

CONFIDENTIAL COUNCILLOR BRIEFING AGENDA TUESDAY 3 MAY 2016

Tuesday 3 May 2016 Council Chamber, Daylesford Town Hall 1:45pm – 5:00pm

PRESENT: Councillors Neil Newitt, Kate Redwood AM, Don Henderson, Sebastian Klein, Greg May, Bill McClenaghan, Pierre Niclas

Officers Chief Executive Officer, General Manager Corporate Services, General Manager Community Services, General Manager Infrastructure and other officers as required

CHAIR: Mayor Cr Neil Newitt

APOLOGIES:

No Time Agenda Item Presenter No

1. 1:45pm Report Proposed Local Government Election Reforms 2016

Attachment 1- Local Government (Electoral) Regulations 2016

General Manager Corporate Services

Page 3

2. 2:00pm Report Community Grants Round 2 15/16

Attachment 2 - Community Grants Round 2 15/16 Recommended and Not Recommended Projects

General Manager Community Services

Page 13

3. 2:30pm Report Economic Development Strategy- Key findings and outcomes Attachment 3 -Economic Strategy Outcomes

General Manager Community Services

Page 20

3:30pm Break

4. 3:40pm Report Proposed rezoning to mixed use zone in Hepburn Springs

Attachment 4 -Hepburn Springs Mixed Use Zone Amendment

Strategic

Planner

Page 32

1125

CONFIDENTIAL COUNCILLOR BRIEFING AGENDA TUESDAY 3 MAY 2016

No Time Agenda Item Presenter No

5. 4.10pm Report PA875 - Construction of dwelling on CA 6F; consolidation of lots 6E, 6J, 6K & lot 1 PS 413309. - 99 Dean-Reservoir Road, Dean

Attachment 5 - PA875 Aerial View

Attachment 6 - PA875 Plans

Statutory Planner

Page 42

6. 4.25pm Report PA000852.01 Removal of condition 5 - Public Open Space Contribution - 2 lot subdivision at 6 Bath Street Clunes

Attachment 7 - PA000852.01 Existing Allotments

Attachment 8 - PA000852.01 Approved Subdivision Plan

Attachment 9 - PA000852.01 Aerial Site View

Statutory Planner

Page 49

7. 4:40pm Report PA1027 - Excision of existing dwelling, two lot subdivision, construction of dwelling on newly created lot - 70 Clarkes Lane, Newbury

Attachment 10 - PA1027 Clarkes Lane Newbury

Statutory Planner

Page 58

8. For Noting Page 63

9. 5.00pm Close of Meeting

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12. COUNCIL SPECIAL COMMITTEES (SECTION 86)

12.1. MINUTES OF SPECIAL COMMITTEES (SECTION 86)



PURPOSE

The purpose of this report is for Council to note the minutes and recommendations from Council’s Special Committees (Section 86).

BACKGROUND

Special Committees are established by Council under section 86 of the Local Government Act 1989 and their function and responsibilities outlined in an Instrument of Delegation. Under the Instruments of Delegation, special committees are required to maintain minutes of meetings held and provide a copy of the minutes to Council for review.

ISSUE/DISCUSSION

Please see listed below the minutes and other reports of Special Committees, as provided by the committees over the past month, for your information:

• Minutes from the Glenlyon Recreation Reserve Special Committee - 16-03-2016

• Minutes from the Drummond Hall Special Committee - 27-05-2016

These minutes have been previously provided to Councillors under separate cover.


Nil


Nil

RISK IMPLICATIONS

Nil


Nil

130



Members of the community are represented on these committees.

CONCLUSION

Minutes and reports have been provided for noting.


That Council:

12.1.1. Receives and notes the following minutes of Special Committees (Section 86) which have been distributed under separate cover:



MOTION

That Council:

12.1.1. Receives and notes the following minutes of Special Committees (Section 86) which have been distributed under separate cover:





Carried

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13. COUNCIL ADVISORY COMMITTEES

13.1. MINUTES OF ADVISORY COMMITTEES



PURPOSE

The purpose of this report is for Council to note the minutes received from Council’s Advisory Committees.

BACKGROUND

Advisory Committees are established by Council and their responsibilities outlined in Terms of Reference. Advisory Committees are required to maintain minutes of meetings held and provide a copy of the minutes to Council for review.

ISSUE/DISCUSSION

Please see listed below the minutes and other reports from Advisory Committees, as provided by the Committees

• Minutes Audit & Risk Advisory Committee - 30-5-2016

These minutes have been provided to Councillors under separate cover.


Nil


Nil

RISK IMPLICATIONS

Nil


Nil


Members of the community are represented on these committees.

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CONCLUSION

Minutes have been provided for noting.


13.1.1. That Council receives and notes minutes of the following Advisory Committees which have been distributed under separate cover:


MOTION

13.1.1. That Council receives and notes minutes of the following Advisory Committees which have been distributed under separate cover:




Carried

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14. CONFIDENTIAL ITEMS

There are no Confidential Items for consideration at the June 2016 Council Meeting.

134


15. CLOSE OF MEETING

The meeting was closed at 8:22pm.

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